Further cuts in production & jobs at MB

Discussion in 'Mercedes News' started by greenmanslk, Nov 14, 2019.

  1. greenmanslk

    greenmanslk Hardcore MB Enthusiast

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  2. slade1

    slade1 Hardcore MB Enthusiast

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    I believe there is 1 1/2 million over supply of cars in EU
     
  3. Petrol Pete

    Petrol Pete Hardcore MB Enthusiast

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    This is a global phenomena , the car industry as we know it is shrinking and will continue to do so. One of the only reasons there are so many new cars on the roads is because of manufacturer driven finance schemes. In the EU many car companies are part funded by governments who have to keep churning out cars to keep some the population in work and to make the peasants think all is rosy in the garden.
     
  4. Bellow

    Bellow MB Club Veteran

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    Is that actually true? Or is the reason that the manufacturers over reach on manufacturing economy-of-scale?
     
  5. MikeInWimbledon

    MikeInWimbledon Hardcore MB Enthusiast

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    Doesn't sound that much to me. 7 1/2 percent of the EU's annual production of 20 million a year.

    Pricing normally fixes the differences - and the rest of the world "only" consumes 80 million cars a year. (amongst 7 billion humans)

    When I read that it's all cuts in management and administration, I see just productivity gains from computerisation, automation, and outsourcing.

    .
     
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  6. Petrol Pete

    Petrol Pete Hardcore MB Enthusiast

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    ^^ Honda stopped making the CRV in Swindon last year because the biggest market was in the Americas so it made sense to move it over there, Swindon were making about 350 per day and they were already being built elsewhere they are still building the Civic , normally at 500 (ish) a day but build has dropped off to half that at the moment due to lack of demand , JLR are going the same way..build is dropping due to less sales in China. Neither of these two have government backing and have to react accordingly.

    The main reason Honda is moving the Civic back to Japan (the only car they make in the UK) Is because the EU offered them massive tax (tariff) breaks to build there cars outside of Europe, some say this was the EU way to wag a big stick at the UK for daring to leave their club...but I digress.

    Interestingly the engine plant at Honda Swindon is flat out 3 shifts making engines for Honda all over the world, there was talk of keeping it running after they leave because the quality of the product is so high.

    Vauxhaull UK will almost defiantly close as the PSA group will look after its own in Europe.

    As I understand it under EU law governments can not bail out failing companies. I guess it's different if the government actually has a stake in the company.

    The car industry in the UK is not the best industry to be in right now.
     
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  7. Riverside Red

    Riverside Red Hardcore MB Enthusiast

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    Except for the Germans of course with Condor Airways, part of the Thomas Cook group. Thomas Cook Airways in the UK were profit making but the UK government stick to the rules and do nowt. You only have to visit most EU countries to see we are the only ones who stick to the rules.

    Hence the demise of many of our industries.

    RR
     
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  8. MikeInWimbledon

    MikeInWimbledon Hardcore MB Enthusiast

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    But lets enjoy a little Schadenfreude, because the German car industry is in far greater sheet because it is totally dependent on exports, and has had its reputation destroyed by Dieselgate.

    In the meantime, the UK will just have to continue to employ a million or so people in the car industry. That's couple of hundred thousand people directly in vehicle manufacture producing 1.6 million passenger vehicles and 85,000 commercial vehicles, for UK consumers and export markets, and then another 800,000 in supply, distribution and servicing . Broadly a £20 billion addition to the UK economy, against a total turnover of £80 billion.

    Small potatoes, maybe, but the taxes that the car industry pays (excluding VED and fuel) just about cover the NHS bill for diabetes treatment for tubbies each year - roughly £12 billion a year.

    .
     
  9. Petrol Pete

    Petrol Pete Hardcore MB Enthusiast

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    With you all the way on this. I have spent years working in Europe, a lot of it in Belgium. I have been stuck in traffic in Brussels behind a dustbin lorry that has operators standing on platforms on the rear of the truck while it is moving, I have seen 'man cages' on forklift trucks still being used, I have been in bars where everyone is smoking and been in very nice butchers shops where raw meats are served right next to cooked meats and prepared ready to eat salads...the list is endless, and this is in Belgium where many of the rules are thought up. Don't get me started on what I have seen while working in Spain,Italy,France,Germany,Netherlands, etc... :mad:

    Just to make it worse I think I remember seeing a straight banana there once as well:banana:
     
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  10. Petrol Pete

    Petrol Pete Hardcore MB Enthusiast

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    You are correct in what you say about the German - and the other manufacturers in Europe - but they will pull up the drawbridge and eventually take all of their production 'home' which of course means Bulgaria,Poland,Romanian,Turkey,Slovakia,etc as well as their homelands. They have to, just to keep their people happy even if it ends up being cheaper to make them in the UK after Brexit....if that ever happens
     
  11. MikeInWimbledon

    MikeInWimbledon Hardcore MB Enthusiast

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    Rolls Royce and Bentley moving to Germany ? Seems unlikely. Mercedes lost 300,000 Euros on every Maybach they built in Stuttgart.
    Range Rover moving to India? Why?
    McLaren leaving Woking? Why?
    MINI's made in Munich? Aren't they expensive enough already?
    Honda closed, because all of its output was being shipped to the States: that we can understand. Especially as BMW have been sniffing around Swindon for ages.

    Turkey making Transits? That makes sense - the plant was antiquated and had no possibilities for expansion, and nowhere else in the UK wanted it.
    Closure of Luton? Long overdue: dreadful site, and dreadful labour history.
     

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