Financial Crisis Causes The Car Industry More Cut Backs And Job Losses

8th February 2009
Honda recently announced a four month closure of their factories which is the longest singular halt in factory work throughout the UK car industry.  Honda stated it is to safeguard the jobs of any worker who is prepared to stay.  However, this time period is extremely long for the average person to lose a substantial amount of their income during the credit crunch. 

It is another blow to the already failing industry that seems to show no signs of recovering this downturn as Aston Martin closed their factory for Christmas for a longer period than usual and made 600 workers redundant.  GM Vauxhall and Mini also opted to extend Christmas shut down with Nissan making 1,200 redundancies.

Derek Simpson, the joint leader of Unite, the union which represent the car industry, has stressed that without some form of intervention from the government, the car industry will slowly disappear in this country.  This would be a tragedy for all the skilled workers who have experience in the car industry.  They may have to face the possibility of their skills becoming redundant.  Some low payment recruitment agencies have re-skilling facilities to assist in the transition from manual skill into a new IT driven field.  History has shown that even with intervention it does not guarantee long term survival as with the case of Rover whose demise was merely slowed down and eventually was sold and most of the manufacturing was moved abroad.