Recession - Stimulating the car industry

SingleSue

I don't think car manufacturers like people like me...my current car is 17 years old, the youngest car I have ever owned was 7 years old (and I thought it was brilliant and such a young car!).

Right now, my ambition is to have a car that is 10 years old.......

piggeh

mvengemvenge wrote: »

I would like to see exactly how much the actual materials for a car cost before it is assembled.

Don't forget to add in the costs for tooling, design work, prototyping, quality testing, safety testing, administration to various EU legislations etc. Repeat costs every few years whenever you feel the desire to revamp a model. The OEMs know all costs for materials in every car part, plus agreed timing models etc to work out labour costs per part, delivery per part, exchange rates etc (and then agreed margins which are normally pretty slim). Sometimes they push their suppliers too far and you end up with underhandedness for suppliers to achieve any respectable level of profit, such as not passing on savings when they've improved productivity to produce panels, for instance, or overcharging on design costs.

By the way, wages were set at my automotive employer at the average wage for that role within the local area. I know other roles are maybe paid well but that's because if the rejection rate increases even slightly, the cost to the business is quite substantial, it's more economical to retain well trained staff in those respects.

BlondeHeadOn

SingleSue wrote: »

I don't think car manufacturers like people like me...my current car is 17 years old, the youngest car I have ever owned was 7 years old (and I thought it was brilliant and such a young car!).

Right now, my ambition is to have a car that is 10 years old.......

Same here, my current car is 15 years old and still going stong - I have no desire to get rid of it as it is reliable and cheap to run, so no trouble.

:j

I am rubbish at helping to stimulate the economy, in so many ways.....

mvengemvenge

Graham_Devon wrote: »

Would you pay your income tax if the government said you didn't have to?

Would you pay for your shopping each week if the government said, don't worry, we will pay for you?

Why would car manufacturers drop prices when they keep getting taxpayers cash anyway, and just keep producing. There really is no need for them to drop prices at all while the governments prop them up.

Just like banks, they have the blackmail opportunity of saying "look, all these people will be effected if you do not hand over cash".

There really is no need for them to reduce their prices.Ford put them up in Jabuary (so did Vauxhall) and I heard ford plans to put the price up another £500 per fiesta end of this month. If we get that scrap scheme, they will put them up again.

The banks didnt lower our loans etc when they got taxpayer money. They didnt make it easier to get a mortgage. Oh no, they just put the rates up to favour them. Same with cars. Same with any industry that gets bailouts and incentives.

Edit: As for the £10 per hour thing. Our cleaner gets nearly £20 per hour. But then shes only in a couple of hours a morning. She does another job, but an hour between this job and the other is lost. So they may get more, but may work less?

Why would they drop prices? Well, to stay in business. One day, that may be the choice they face.

The £10 p/h thing - however long they were working, this was at a time when 'ordinary' cleaners were paid £2.50 p/h. That's my point.

ninky_2

Graham_Devon wrote: »

Why would car manufacturers drop prices when they keep getting taxpayers cash anyway, and just keep producing. There really is no need for them to drop prices at all while the governments prop them up.

Just like banks, they have the blackmail opportunity of saying "look, all these people will be effected if you do not hand over cash".

Edit: As for the £10 per hour thing. Our cleaner gets nearly £20 per hour. But then shes only in a couple of hours a morning. She does another job, but an hour between this job and the other is lost. So they may get more, but may work less?

I think it's time we let them go under. I'm willing to take the risk.

I agree, I don't think £10 an hour is too much for cleaning in a car factory. Glad you are paying yours a reasonable amount. This is supposed to be a civilized country after all.

Graham_Devon

mvengemvenge wrote: »

Why would they drop prices? Well, to stay in business. One day, that may be the choice they face.

The £10 p/h thing - however long they were working, this was at a time when 'ordinary' cleaners were paid £2.50 p/h. That's my point.

At the moment though, this isn't a choice they have to face.

When they can register cars as new no matter how long they been sitting in a field, and sell them as new, while getting not only government bailouts (around europe) but also on top of the bailouts, government incentives to push the punter through their door to buy a new car.....they really don't have any need to reduce prices.

If the government was directing people to my business AND giving me money to pay my staff, I would be laughing, and quite possibly, putting my prices up.

mvengemvenge

Graham_Devon wrote: »

At the moment though, this isn't a choice they have to face.

That's just the point, though, 'at the moment'.

I understand your argument, but it hangs on whether the country can, over a prolonged period, subsidise and support the industry to keep producing cars no-one is buying.

My feelings are that feelings amongst the populace about supporting others while they struggle themselves will force people like Mandelson to bite the bullet after not too long.

NuLab will be fighting off the Tories very soon and will need to appeal to middle England. Middle England doesn't like subsidies.

We'll see.

Graham_Devon

mvengemvenge wrote: »

That's just the point, though, 'at the moment'.

I understand your argument, but it hangs on whether the country can, over a prolonged period, subsidise and support the industry to keep producing cars no-one is buying.

LOL I get the feeling whether the country can or not, were going to do it!

Rochdale_Pioneers

Graham_Devon wrote: »

LOL I get the feeling whether the country can or not, were going to do it!

Well if we don't then we sit and watch the French and Germans and others do it, watch our car industry die, then spend the next forever driving imported cars.

Whats the cost to the UK in lost tax revenues from these factories and all their parts suppliers, the caterers who supply them etc. Then the costs of regenerating Derby and Swindon etc and creating new jobs? Bet its a whole lot more than the subsidy thats needed to keep them open.

Graham_Devon

Rochdale_Pioneers wrote: »

Well if we don't then we sit and watch the French and Germans and others do it, watch our car industry die, then spend the next forever driving imported cars.

And thats different to now....erm, how?!