How Overseas Investors Saved UK Car Makers

Daily Mail (London), August 15, 2012 | Go to article overview

How Overseas Investors Saved UK Car Makers


Byline: INDUSTRY ANALYSIS By Bob Bischof

BRITAIN'S car industry is booming. After decades of decline, the UK for the first time since the mid-1970s is making more cars for export than are being imported. Investment is rolling in and production is up and rising substantially.

Just this week Jaguar Land Rover announced its Halewood factory would move to 24-hour round-the-clock production for the first time with the introduction of an extra shift.

The car maker has created another 1,000 jobs at its Merseyside plant to meet demand for its 'baby' Range Rover Evoque - launched by Spice Girl Victoria Beckham who also created a special edition version and Land Rover Freelander offroader models.

Most of the UK car industry is now in foreign hands, and thriving. So how come, whilst it was in British ownership, the reverse was the case? Some people blame the unions for their part in its downfall, but recently employees have shown themselves prepared to work hard and agree to flexible deals to preserve jobs, so it seems unlikely there is anything inherently wrong with the British workforce.

Others blame management for the failures.

However, an analysis of the management structures of the German, Japanese and Indian car owners show that many of the managers in their UK operations are not only British but are doing a first class job.

So if Britain has top flight workers and managers, why did it all go so wrong in the past? The answer has to lie with the different corporate governance models that are used.

All the above mentioned car manufacturers are from countries where companies and their managements are not beholden to the Anglo-Saxon short term shareholder value model.

This ethos inflicts a pressurecooker obsession with quarterly results on managers.

If boards are incentivised through share prices, they would rather pay higher dividends or try to please the markets with share buy-backs, takeovers or break-ups than invest in skills, modern equipment, new products, or research and development. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

How Overseas Investors Saved UK Car Makers
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.