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Automakers Building New Car Models in Britain


Thursday, March 18th, 2010

The global financial meltdown revealed the soft underside and vulnerability of the British economy, which had gravitated largely towards financial services.

With the announcement the new models of cars will be produced in the country, it was hailed as a good strategy to diversify the British economy to protect it from becoming reliant on one major industry. The recession revealed the weakness in any economy becoming a mono-economy, which rises and falls on the fortunes of that industry.

Companies producing new models include Nissan Motor Co., McLaren Automotive Ltd. and Spyker Cars N.V., with Ford Motor being awarded a government grant to build engines.

The question is in the focus of the cars and engines being built, as they're largely politically correct and so-called environmentally friendly, which usually means there isn't necessarily a market for them, as the electric cars being built, along with the engines being built by Ford.

On the other hand, the high-end sports car sounds good, and that could have some real sustainability as far as sales go, especially when a real economic recovery emerges. 

The problem with the environmental stuff is it's subsidized by the government, and just because the British government takes taxpayer money and throws it at projects doesn't mean people will buy them.

McLaren, one of the biggest names in car racing, will build a manufacturing plant in the south of London. Initially they will build the MP4-12C sport car, starting as early as 2011 to begin production. 

McLaren also plans on building out a string of cars to build up a unique automotive company. They are using private financing for the project, making it much more liable to be successful and to produce cars the public actually wants, and not forced upon them by government subsidies for cars that may not be successful in the marketplace.



Article by Gary B

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: auto industry , british manufacturing , mclaren automotive , nissan motor , spyker cars