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Britain's £320m Gift To Its Car Manufacturing Rivals

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http://www.independent.co.uk/news/business...ls-1795282.html

Who's been the biggest winner from the British Government's car scrappage scheme? The clear answer is car workers. Car workers, that is, in South Korea, India, France, Spain, Slovakia, Poland, Germany, China, the Czech Republic, Italy, Japan... just about anywhere but Britain.

Some 86 per cent of the vehicles registered under the scheme so far have been made abroad, and a generous estimate of the value of engines and other components made in the UK that find their way back here via foreign assembled cars and vans would still mean about £8 out of every £10 spent by the Treasury goes abroad. By the time the full £400m has been disbursed, some £320m will have gone to subsidise foreign car workers' jobs, and just £80m will have stayed in the UK.

The most spectacular contrast is between the £20m of taxpayers' money that has gone to the Hyundai/Kia combine, based in South Korea and which has no manufacturing, design or engineering presence in the UK; and the miniscule £241,000 that Jaguar and Land Rover have received, as a result of the sale of 52 Jaguar cars and 189 Land Rovers. Perhaps most poignant of all is the mere £22,000 that has gone to the Chinese-owned remnant of MG Rover at Longbridge, the last vestige of our old indigenously owned motor industry. Mini did better, with £1.5m, and Japanese makers such as Nissan, Toyota and Honda as well as Vauxhall also saw some cash.

Mike Steventon, from KPMG, points out: "The scrappage scheme in the UK has provided a much needed boost for car dealers, but has done very little to support UK manufacturing jobs. The vast majority of cars sold under the scrappage scheme are imported cars with the big winner Hyundai and Kia.

"UK car manufacturing is primarily focused on higher value, prestige brands and over 70 per cent of UK manufactured cars are exported. The scrappage scheme has provided a boost for smaller, low cost cars which are principally imported. Indeed approximately 90 per cent of cars sold under the scrappage scheme are imported and, as such, the scheme has done very little for UK manufacturing jobs."

How many UK only manufacturers are there now? I'm struggling to think of any apart from Noble.

http://noblecars.com/

I'm sure there are other esoteric manufacturers in the UK.

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How many UK only manufacturers are there now? I'm struggling to think of any apart from Noble.

Revive the Sinclair C5!

On a related note, anyone know if I could get away with any of:

(1) trade in a ten-year-old banger for £2000 off a really nice bicycle,

or

(2) try the above, and sue anyone who refused for discrimination,

or

(3) try the above, and go to the meeja to make a story of how they're blocking my attempts to reduce emissions?

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Guest P-Diddly
Revive the Sinclair C5!

On a related note, anyone know if I could get away with any of:

(1) trade in a ten-year-old banger for £2000 off a really nice bicycle,

or

(2) try the above, and sue anyone who refused for discrimination,

or

(3) try the above, and go to the meeja to make a story of how they're blocking my attempts to reduce emissions?

96475477_91d0f48da2.jpg

Edited by P-Diddly

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Guest Fedup
http://www.independent.co.uk/news/business...ls-1795282.html

How many UK only manufacturers are there now? I'm struggling to think of any apart from Noble.

http://noblecars.com/

I'm sure there are other esoteric manufacturers in the UK.

Another knee jerk reaction from a bunch of f**kwits that act only to appear they are doing something without actually thinking the consequences through. I wonder how many people traded their clapped out austin allegros and mk1 fiestas in for a Noble M2?

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lets not forget that for each car sold, a UK dealer breathes a sigh of releif too.

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Guest P-Diddly
Another knee jerk reaction from a bunch of f**kwits that act only to appear they are doing something without actually thinking the consequences through. I wonder how many people traded their clapped out austin allegros and mk1 fiestas in for a Noble M2?

I traded my Austin Marina in for a new Morgan.

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Well Labour, for all their faults, aren't responsible for the disconnect in the tiny minds of the British public between production and source of production.

That the Germans, French, Japanese, Koreans and Italians tend to buy the products of their indigenous manufacturers, whereas the British don't, is one of the most malign legacies of Thatcher.

That said, the fact that Mandelson and Brown are encouraging this madness far further than the Tories ever would, tends to lend weight to the notion that they are almost porno-neoliberals, rather than the pragmatic types that the Conservatives used to be.

Edited by CokeSnortingTory

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Another knee jerk reaction from a bunch of f**kwits that act only to appear they are doing something without actually thinking the consequences through. I wonder how many people traded their clapped out austin allegros and mk1 fiestas in for a Noble M2?

Another great govt policy of exporting our cash abroad. Total genius.

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Don't forget it was Thatcher that ultimately put the nail in the coffin of Rover, she got BMW involved for some stupid reason when Rover was quite happy developing a good relationship with Honda.

I bet if Honda had been left to get on with it Rover would still be here today and the car scrappage might have really benefited a truly UK producer.

It was Heseltine attempting to obtain "the best value for the taxpayer". The c**t.

Basically, our entire ruling class are f**king mongs. That they accidentally managed to select an individual who reflected their class stupidity (Brown) shouldn't lead us to believe that there will be any better decision making when he is gone.

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Guest P-Diddly
Another great govt policy of exporting our cash abroad. Total genius.

US

American cars scraped % of total: 77

Foreign cars bought % of total: 87

Link: Watching CNN in the sh!tiest hotel room possible in Queens.

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Well Labour, for all their faults, aren't responsible for the disconnect in the tiny minds of the British public between production and source of production.

That the Germans, French, Japanese, Koreans and Italians tend to buy the products of their indigenous manufacturers, whereas the British don't, is one of the most malign legacies of Thatcher.

That said, the fact that Mandelson and Brown are encouraging this madness far further than the Tories ever would, tends to lend weight to the notion that they are almost porno-neoliberals, rather than the pragmatic types that the Conservatives used to be.

Don't forget it was Thatcher that ultimately put the nail in the coffin of Rover, she got BMW involved for some stupid reason when Rover was quite happy developing a good relationship with Honda.

I bet if Honda had been left to get on with it Rover would still be here today and the car scrappage might have really benefited a truly UK producer.

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The Governments involvement is self-Financing....

They put in only £1000 and the car manufacturer puts in £1000

When the brand new car sells, the Buyer pays the Government about £1000 VAT...

So where is the lose to the UK Tax-payer?

you can say it is a problem because it removes old vehicles for starter drivers, mechanics, spare parts etc...

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The Governments involvement is self-Financing....

They put in only £1000 and the car manufacturer puts in £1000

When the brand new car sells, the Buyer pays the Government about £1000 VAT...

So where is the lose to the UK Tax-payer?

you can say it is a problem because it removes old vehicles for starter drivers, mechanics, spare parts etc...

Wrong.

The VAT is brought forward. Taken out of future revenues.

The £1000 is permanently gone. A handout to someone, at the expense of the rest of us.

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This is a pretty unblanced article take Honda for example there are only two Civic manufacturing plants worldwide Swindon and Turkey. Little know fact is that Swindon exports Civics to Japan. Over 95% of Civics are exported from Swindon.

So how many Civics, Jazz, Minis, Toyota Avensis, Nissans that are built in the UK and exported to other cash for clunkers schemes in the US, Germany and France.

That would be an interesting statistic to know.

Also do not forget that the top selling car in the German cash for clunkers was I beleive the Opel Corsa made in Spain, second and third were small Renaults and Citroens not made in Germany. Perhaps this is why France is holding up well because the top selling cars in France are Citroens and Renaults and Sarko shut the lant in Czech to move production to France.

Edited by ralphmalph

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Many thanks to the OP for posting.

Last year my co workers and I unsuccessfully lobbied the Government for £100 million worth of support to try and keep Ford from moving our jobs here at the Southampton Transit Plant to Turkey.

We had a petiion on the No 10 website we faxed Mandelslime direct - did all sorts to no avail.

Now we discover £320 million of Taxpayers money has gone to support Foreign car Workers overseas including £20 million to Korea

How does Gordon Brown think that makes us feel?

Inclined to vote Labour perhaps?

The Ford Plant was staunch Labour.

I have emailed the article to every guy I know who works there and I have already started to receive replies.

'Betrayed' says one 'Stabbed in the back' says another.

In fact if you read further down the article you will see that only 200 extra transits were built at Southampton to be sold under the scheme.

Thats less than 2 days work.

Ford still received £14 million from the Taxpayer though,so you could regard this as a £70,000 subsidy per British built vehicle.

The Irony is that the Southampton Transit plant is undergoing further layoffs due to 'lack of orders'.

We suspect that Ford is sourcing orders for the Transit made under the scrappage scheme from Turkey rather than the UK because they make an extra £1000 per vehicle profit on turkish built models.

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Guest P-Diddly
Many thanks to the OP for posting.

Last year my co workers and I unsuccessfully lobbied the Government for £100 million worth of support to try and keep Ford from moving our jobs here at the Southampton Transit Plant to Turkey.

We had a petiion on the No 10 website we faxed Mandelslime direct - did all sorts to no avail.

Now we discover £320 million of Taxpayers money has gone to support Foreign car Workers overseas including £20 million to Korea

How does Gordon Brown think that makes us feel?

Inclined to vote Labour perhaps?

The Ford Plant was staunch Labour.

I have emailed the article to every guy I know who works there and I have already started to receive replies.

'Betrayed' says one 'Stabbed in the back' says another.

In fact if you read further down the article you will see that only 200 extra transits were built at Southampton to be sold under the scheme.

Thats less than 2 days work.

Ford still received £14 million from the Taxpayer though,so you could regard this as a £70,000 subsidy per British built vehicle.

The Irony is that the Southampton Transit plant is undergoing further layoffs due to 'lack of orders'.

We suspect that Ford is sourcing orders for the Transit made under the scrappage scheme from Turkey rather than the UK because they make an extra £1000 per vehicle profit on turkish built models.

Kenneth-Williams-carry-on-movies-1210643_468_582.jpg

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