Comments on: The Automotive Industry – Reversing into decline or driving forwards to make changes for the future? http://blog.interimpartners.com/the-automotive-industry-reversing-into-decline-or-driving-forwards-to-make-changes-for-the-future.html Encouraging debate and discussion within the interim management sector Fri, 27 Aug 2010 15:51:36 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Mark Hendy http://blog.interimpartners.com/the-automotive-industry-reversing-into-decline-or-driving-forwards-to-make-changes-for-the-future.html/comment-page-1#comment-110 Mark Hendy Wed, 18 Feb 2009 12:21:27 +0000 http://www.interimpartners.com/blog/?p=53#comment-110 As a write there is speculation circulating the internet that SAAB could go bust within days. <blockquote>Saab, the Swedish carmaker owned by America's General Motors (GM), could go bust within ten days without an immediate injection of state aid, the US company warned last night. GM said last night that as part of a sweeping restructuring of its global operations, it aimed to sell Saab along with other underperfoming businesses including its Hummer brand. However, GM said that Saab was losing so much money so quickly that, without government intervention to secure its future, the subsidiary could be forced to file for reorganisation by the end of this month. </blockquote> Full story here: <a href="http://business.timesonline.co.uk/tol/business/article5757562.ece" rel="nofollow">SAAB Story</a> GM and Chysler approached congress yesterday for nearly $22bn in state aid and included in their plan was the shedding of thousands of jobs and in Chryslers case dropping three of its model range into the skip of history. Here in the UK production schedules have been slashed at Nissan who have asked the European Investment bank for billions of Euro's in aid, Toyota, Jaguar Land Rover, BMW (mini), Aston Martin, GM (Vauxhall), Ford and the list goes on. However, it is important to recognise that this is a necessary paradigm shift and that left to the free market the old dinosaurs of business models have maxed out on their evolution and their time is done. There will be survivors and there will be regeneration and in fact those that act now to maximise their opportunities will be tomorrows market leaders. In addition the UK has experienced a major shift in the value of sterling at a level unprecedented in my lifetime and is now well placed as a low cost economy which has existing infrastructure and skills. Lets hope the meddlers in parliament do not give away the advantage of sterling's elasticity by railroading us into the Euro. There is no doubt that there is over capacity in the market, but the world is not about to stop revolving around it's axis. There will be opportunities for good interim managers to contribute to the streamlining of business, to help purge out bad business practice and drive key metrics and advance the British automotive industry back to the top of the world stage. Our job as Interim's is to be the best we can be and to lead the way. As a write there is speculation circulating the internet that SAAB could go bust within days.

Saab, the Swedish carmaker owned by America’s General Motors (GM), could go bust within ten days without an immediate injection of state aid, the US company warned last night.

GM said last night that as part of a sweeping restructuring of its global operations, it aimed to sell Saab along with other underperfoming businesses including its Hummer brand.

However, GM said that Saab was losing so much money so quickly that, without government intervention to secure its future, the subsidiary could be forced to file for reorganisation by the end of this month.

Full story here: SAAB Story

GM and Chysler approached congress yesterday for nearly $22bn in state aid and included in their plan was the shedding of thousands of jobs and in Chryslers case dropping three of its model range into the skip of history. Here in the UK production schedules have been slashed at Nissan who have asked the European Investment bank for billions of Euro’s in aid, Toyota, Jaguar Land Rover, BMW (mini), Aston Martin, GM (Vauxhall), Ford and the list goes on.

However, it is important to recognise that this is a necessary paradigm shift and that left to the free market the old dinosaurs of business models have maxed out on their evolution and their time is done. There will be survivors and there will be regeneration and in fact those that act now to maximise their opportunities will be tomorrows market leaders. In addition the UK has experienced a major shift in the value of sterling at a level unprecedented in my lifetime and is now well placed as a low cost economy which has existing infrastructure and skills. Lets hope the meddlers in parliament do not give away the advantage of sterling’s elasticity by railroading us into the Euro.

There is no doubt that there is over capacity in the market, but the world is not about to stop revolving around it’s axis. There will be opportunities for good interim managers to contribute to the streamlining of business, to help purge out bad business practice and drive key metrics and advance the British automotive industry back to the top of the world stage. Our job as Interim’s is to be the best we can be and to lead the way.

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