Saving the Car Market Place
Most people know the current financial situation has hit the world very strong, almost every sector has felt the wave of destruction that the economic down fall has brought to us. Saying this there are some industries that are being hurt more than others and this can with no comparison be said for the vehicle makers and dealer industry. The market is at its lowest point for decades with the sale of new cars dropping a dramatic amount.
Now Lord Mandelson, the companies secretary has jumped in with a large bail out delivery of around 2.3 billion pounds. In the short term we will see a great postive effect, but I feel over the long term that we will see a bad situation arise.
Don't get me wrong I am all for rescuing out great companies that have mis judged the credit crunch and not budgeted around it, but I do not feel this is the same for most of the car sector. Folks are not interested in purchasing vehicles. I say that if the car that a company is supplying is not doing good than that overwhelmly is completely down to the company not seeing the demands of the industry.
Many people these days do not want petrol guzzling cars such as the Mercedes for 2 reasons, firstly because people travel a lot and it will set them back a lot more and secondly is that they send to much pollution to the planet affecting the environment. So this is the reason that these businesses are struggling, not because there finances are out of shape it's purely because there product is not shifting and probably will not sell even after the bailout.
Althoughit is nice for people to bail out all these companies, in some ways I see the credit crunch as a positive ore. It will most probably forget all of the bad sections of over saturated markets and when this is all complete we may see a new positive breed of car manufacturers coming through, that could in fact reinvent the way we drive and look at vehicles, the new technology could end up taking us to new levels and making cars a lot safer and comfortable to take the wheel in.