General Motors, the American British Leyland

In 1979, the voters of Britain went to the polls.that the goods you were buying were inferior to
The result of that election would go on to havethose manufactured by the Japanese and the
repercussions that can still be felt today. TheGermans. No doubt there are those over the
voters made a brave choice. A first for Britishpond who currently espouse this as the cure to
politics. The good people of the British Isles votedtheir industries woes, unfortunately, it didn’t
for a woman. At the time, the British car industrywork here and it will never work there. Germany
had a few problems and as a result governmentand Japan produce cars that sell in every market
money, our money, was used to prop up an ailingin the world. People dream of owning a Mercedes
industry that produced bad cars, badly.Benz or a top of the range Lexus. Not many
Controlled by the unions, British Leyland waspeople look to General Motors for their next
doomed to failure, but had to be supported todream car.
avoid the losses of hundreds of thousands ofWith all of America’s big three deeply in
jobs. So it was. Billions of pounds were used totrouble and even more deeply in debt, Barrack
keep a company going that built cars that peopleObama will have a difficult choice to make. Invest
did not want to buy. Old technology, poor buildbillions of public money to support an industry,
quality and union strikes all contributed in makingthat to onlookers seems doomed to failure, or
the British car industry a laughing stock worldwide.don’t invest and let capitalism take its course.
So what happened to the British car industry?Either way, this American dilemma certainly bears
Simple, it collapsed. Over the following years thea striking resemblance to the fortunes of the UK
profitable bits were sold off to companies thatcar industry and we all know what happened to
could make cars people wanted to buy. The bitsthat.
that nobody wanted died a slow painful death,To survive in any form, American manufacturers
notably the Rover brand that finally curled its toesmust try to build cars that will sell in all markets,
up in 2005.domestic and overseas. The problem they face is
Fast forward thirty years and American votersthat overseas manufacturers already do this and
have just been to the polls. The voters made aif we’re being brutally honest, they do it quite
brave choice. A first for American politics. Thewell. So instead of wasting all those billions
Good people of the U.S. of A. voted for anpropping up an ailing industry, why not buy
African American. As you know, the AmericanMercedes or Toyota and move them to the US?
auto industry is having a few problems at theIt may cost you more in the short term, but in
moment and as a result, government money,the long term you’ll have a car industry that
your money, is being asked for to prop up anbuilds quality cars that people will want to buy
ailing industry that produces bad cars, badly.throughout the world. The alternative? Well, take
Thirty years ago in Britain there was a huge pusha look at British Leyland.
to buy British. A great idea apart from the fact