Financial Times FT.com

A car industry rescue just does not wash

By Jonathan Guthrie

Published: December 10 2008 19:50 | Last updated: December 10 2008 19:50

I bought a car on Saturday. The salesman’s expression could not have been more incredulous had Elvis ridden past on a unicorn. Buy a car? Did I not know there was a recession on? Well, if I was sure. He was the only salesman present at the dealership. Everyone else had sensibly taken the day off. I was his solitary customer that morning.

The British car industry is going through a rough patch. Motorists are thriftily running their old bangers for longer before replacing them (mine conked out terminally on the M25). In these days of state liberality with future tax revenues, the automotive sector is looking for a handout. Bungling bankers have already had one, so why not petrolheads? UK businesses and trade bodies have been emboldened by the $15bn “bridging loan” for General Motors and Chrysler that politicians have been thrashing out in Washington this week.

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