The global credit crunch has affected many people and many industries, we all know that, and of the worst hit industries has been the car manufacturer industry, with many of the major companies having to close their production plants for a few weeks and even months in some cases, having an adverse effect on the livelihood of production staff and other employees.
In the UK alone Aston Martin, Bentley, Nissan, Jaguar Land Rover, MINI and Honda are among those giants that have had to halt production or lay off staff. Honda, a leading player in the world of car manufacture, especially with such innovative designs aimed at lowering CO2 emissions and offering economical vehicles, have had to halt production in the UK for four months, until June.
Honda dealers just haven't been even close to hitting sales targets simply because consumer confidence is at an all time low. People are so reluctant to spend, especially on brand new cars, as the future of the UK and global economy is still not clear. With interest rates at an all time low in the UK, people may not be inclined to save all of their money in the UK, but at the same time, many are avoiding the temptation to upgrade their car as they would normally.
Honda employs 4,000 factory workers in the UK, at least three quarters of which have been affected by the four month closure of the plant, and those working at Honda dealers have been affected also. As less and less people are purchasing cars, staff are feeling the brunt of this dire situation.
The UK government are considering following Germany by introducing a 2,000 pounds discount on any brand new vehicle when trading in any car that is more than nine years old. This is in a bid to increase activity in the car sales industry but also as an eco friendly move to lower CO2 emissions by getting old cars off the road. This model has yet to be sanctioned and if agreed by Parliament will not be implemented until after the Budget on April 22nd, but car manufacturers' and their employees, Honda dealers and factory staff in particular, will be hoping that the Government see sense and approve this suggestion.
Since being implemented in Germany the scheme has been a success, with sales figures of brand new vehicles increasing by 21 per cent in February alone. Business Secretary Lord Mandelson hopes that a similar scheme can revitalise the UK market, although the government will no doubt face opposing views from the public about giving away tax payers' money to purchase brand new cars.
If this scheme does get the green light, Honda dealers will hope that their sales figures will rise, and they are well placed to obtain a share of the market given that their cars are amongst the most reliable on the market according to consumer experts, Which?.
Honda have topped the Which? Reliability League in the last two years and in 2007 had a remarkable six out of the ten top cars in the league table. With such innovative, eco friendly and reliable engineering it really is a shame to see a brand such as Honda struggling, but in time that will surely change as consumers look towards a car manufacturer that gives you quality and value for your money.
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