The recession has hit the UK hard with more than 3 million people currently unemployed yet there has recently been some good news for the British motor industry. News that BMW are to produce two new MINI models at their UK plant in Oxford has safeguarded many jobs at the factory for the foreseeable future and it has been reported that up to 1,000 new jobs could be created.
This is a far cry from back in February when 850 MINI factory workers lost their jobs and the plant had to temporarily shut down. But since then the new car sales market has improved. The Government Scrappage Scheme has fulfilled its objective in giving the car sales industry a kick start; it has also allowed many struggling manufacturers to safeguard jobs when otherwise they will have had to make further redundancies.
Like MINI, Honda had to close their factory plant at the start of the year in order to cut costs to safeguard jobs also. It appears that the temporary factory closures were a good move as both Honda and MINI are performing well once again, with Honda's hybrid vehicle, the Insight, starting to pick up in terms of sales and
now this from MINI.
In the grand scheme, this is a minor success story in terms of curbing the UK recession stream that looks set to continue to head out of control. This is the worst recession in the UK for almost 30 years and experts keep telling us that it will last long into next year.
Hopefully other car manufacturers will be able to reinvest into future UK developments in order to both boost the British car making industry and also lift the unemployment rate. Over the years more and more manufacturers have closed British factories down in favour of cheaper labour in other European countries such as Poland. With any luck this will not continue to follow suit, especially during this current recession.
As the Government Scrappage Scheme has improved the sale of new cars - experts say that the 300 pounds million invested into the scheme by the Government has almost run out - and as the economy gradually picks up again as it is showing signs of doing, more people will be wanting to spend out on a new car, and when they look and drive as well as a MINI, they'll surely sell like hot cakes.
Author Resource:-
Thomas Pretty is a market analyst with many years of experience analysing the car industry. Find out more about MINI at http://www.coopermini.co.uk/
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