Essays on Impact of the Decline in the Car Industry on the State of UK Research Paper

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The paper "Impact of the Decline in the Car Industry on the State of UK"  is a perfect example of a research paper on macro and microeconomics. The UK is the 12th largest automotive manufacturer and it also is one of the most important sectors in UK economy. So it won’ t be wrong if we say that the automotive industry is the pillar of the economy. In the year 2005, there were 210,000 people in the workforce which were directly engaged in auto and car manufacturing in the UK car industry. This makes up a total proportion of 6.5 percent of the entire UK manufacturing in that year. The crisis in the auto industry is indicative of the general precipitous decline in UK manufacturing that is now underway.

At the beginning of the year 2009, the Office for National Statistics (ONS) revealed the output of UK car manufacturing and it was discovered that the total output of car manufacturing had fallen with the fastest pace ever since the year 1981. BACKGROUND Jaguar has its plants in Birmingham and Coventry and is the big success story posting four years of strong sales.

In 2001 the company sales 100,000 cars for the first time ever. In 2000, the Rover Cars went into bankruptcy due to the fact that the former BMW owner was not successful in recovering the company from the huge losses that it had accumulated. The number of new cars produced in the UK fell by 59% which is a record and the UK car industry has to suffer because of weak demand. Many manufacturers have to cut down the production because of the falling sales. Current situation and facts: The following are some of the facts about the deteriorating automotive industry: The Society of Motor Manufacturers and Traders (SMMT) said just 59,777 cars were made in the UK last month. The 59% fall was the largest drop in a single month according to SMMT records which date back to 1970, and the fifth straight month of decline. The SMMT (Society of Motor Manufacturers and Traders Ltd) is involved in asking the government to take measures in order to get help for their finance divisions whose major task is to make loans available to purchase cars.


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