The Times of London: "Vauxhall in Secret Cash Plea to Save 5000 Jobs"

the times of london vauxhall in secret cash plea to save 5000 jobs

British Leyland 2.0? Nope. But that’s what the London Times might like us to think, at least based on the headline: “Vauxhall in Secret Cash Plea to Save 5000 Jobs.” Oh, well that’s pretty dispositive, isn’t it? Until the next paragraph, which actually tells us “last week along with other carmakers, to urge the Government to give guarantees offering financial comfort to its car-part suppliers and dealerships.” And then later on, we learn that Ford and Honda attended the meeting too, as they also manufacture cars in the UK. Why wasn’t that in the headline? Right. Meanwhile, the British government is already paranoid about a British Leyland repeat, and has had enough of a headache with the recent nationalization of the Northern Rock bank. The concern raised by the Times could, eventually, have some merit. Vauxhall and Opel (which are distinguished only by a brand name and steering wheel placement) are totally screwed as GM accelerates its disintegration. The US Congress isn’t going to bail them out, and if I were betting I’d say GM Europe and Saab will be spun off in the next six-to-twelve months.

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  • Robert Farago Robert Farago on Dec 06, 2008

    Not so secret now, eh Mr. Bond?

  • Tony-e30 Tony-e30 on Dec 06, 2008

    "Do you expect me to talk?" "No, Mr. Bond. I expect you to die."

  • Cammy Corrigan Cammy Corrigan on Dec 07, 2008

    I really don't see the problem here. Part of GM has gone to the UK government for help (like the US), the government may or may not bail out part of GM (like the US), GM argue about saving jobs (like the US) and the government are weighing up how many votes will be lost/won (like the US). Personally, I hope Vauxhall does get the help is asks for. People shout a lot of crud about nationalisation being a bad thing. Renault is partially nationalised (French government owns 15% and until Carlos Ghosn, was run by a civil servant (Louis Schweitzer)) and so is Volkswagen (the "VW law"). Both are doing OK*. * = Before anyone pipes up about Renault's falling market share, please remember, that they work with Nissan and they'll give Renault all the help they need. Incidentally, buying into Nissan was approved by the French government (read "Shift" the book). Not all governments are interfering, clueless busybodies and not all CEO's elected the Board of Directors (a la capitalism) are the right people for the job...

  • Charly Charly on Dec 07, 2008

    It is more than votes. It is also about the economy. If GM would die now than most of its suppliers will die too. If GM goes into a Leyland cycle that at its end it will be small enough to not take most of its suppliers with it.

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