Peugoet shed 2,300 jobs. The beginning of the end?

Discussion in 'Current Affairs, News and Analysis' started by chocolate_frog, Apr 18, 2006.

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  1. Peugoet have announced the that their Ryton plant will close next year, with a loss of 2,300 jobs.

    Not long ago MG/Rover shut their plants in the midlands also.

    Is this a potential melt down for the UK economy, bearing in mind the massive debt burden carried by the nation? And the cost of living in todays Britain.

    Alan Duncan, the Shadow Trade and Industry Secretary said:
    Times article
  2. spike7451

    spike7451 RIP

    My Dad took early retireent from Peugeot Talbot (as it was then) back in 1982,when they moved their British H.Q from Coventry Road in Birmingham to a old British Leyland plant at Tile Hill in Coventry.As far as I'm aware that Tile Hill site is still going although it's manly a parts depot.
  3. As was rightly mentioned on the news this may not have happened in France but France close of their country to other manufacturers. We still have many car factories going strongly, for example Honda at Swindon. Our liberal market has given us an unemployment rate half that of France.

    I have no doubt that there will be an impact on the local area, but as a country I see no problem. Overall the statistics on car factories show no major drop in the UK, as brands such as Nissan and Honda make up the shortfall.

    My sympathies to the workers and their families and I hope when the plant closes in a year they will all have work. However overall I do not see our economy melting down.
  4. Not good news for Cov though . That's Jaguar , Massey-Ferguson and Peugeot in fairly short order. It is ironic , as Cov. council are spending a lot in improving transport infrastructure, including upgrading the existing Airport, and establishing itself (with some co-operation from Warwick Uni and manufacturers ) as a centre of technology excellence.

    It's not productivity that's the problem , it's the cost of production that's the issue.
  5. But it is productivity, we are less productive than the French, if you improve productivity you should therefore reduce the cost of production.
  6. Can't agree with jailor on French productivity. This is down to French protectionism. Their labour laws are more restrictive for employers than ours but in the present (French) political climate they wouldn't dare close one of their own plants.

    Edited for typo
  7. I agree with you LJ,

    The French insist on a 2 week shut down every spring (its happening now) so the old adage about productivity is ARRSE...

    i've spent the last 6 months dealing with the French and its all "local sub contractors" this and "local suppliers" that...

    they are run by their trade unions, get a 2 hour lunch every day and as a Brit company trying to work out there you get nothing but obstacles.
  8. I really wish people woukld stop over-dramatising events like this!

    We live in a capitalist economy, where supply and demand dictate the price/profit ratio. It costs 430 euros more to make a peugot 206 in Coventry than it does in any other peugot factory. Therefore, it was unsustainable for the company to continue manufacturing on that site.

    Whilst it is a tragedy for the local population and the workers, we must look at the bigger picture. We as a well-developed country with high wages, social security and health and safety, cannot compete with countries in the far east who can produce the same quality of product for far less. As such, we must move with the times and specialise in areas that we can outperform 3rd world countries.

    Instead of trailing our feet in our 'glorious past', the govt and the unions should be looking forward for ways to push our economy into new and emerging industries that ensure our place as a world leader on research, development and innovation. We as a nation have a proud history of moving forward and being at the cutting edge. Lets not allow the unions to destroy that.
  9. Agent Smith is totally correct, we live in a capitalist market economy. Of course it's a shock for the local economy but this is sadly nothing new. Where are all the industries that made Great Britain great? Any that are left are shadows of their former selves.

    Black and Decker closed an entire factory in Germany and moved it to the NE of England and purely because of the wages bill. The fact that factories shut in the UK and move to where labour costs are cheaper shouldn't come as a surprise to anybody. The benefits of these reduced labour costs are generally passed on to the consumer.

    Of course the effect to the local area, including the knock on effect will be great but many areas have developed and prospered after the traditional industries disappeared. Of course HMG has a pivotal role to play but its down to the people themselves to drag themselves out of the shite and recover. The fact that it wasn't really anybody's fault is probably not much comfort but that's just the forces of a market economy at play and it's no picnic.
  10. I agree with agent-smith and mistersoft. However! it would do no harm whatsoever for everyone to immediately stop buying Peugeot/Citroen cars, they are crap anyway. The reason I say this is because it's exactly the sort of thing the French would do (and get away with).
  11. Great I can buy a big fcuk off Sssssssssssssssang-Yong now if I can fit the name badge in the garage.
  12. Broadly speaking we do live in a market-driven economy, but this decision wasn't taken purely on economic grounds. The French political climate influenced it as much as anything, so it's not just a matter of market forces.

    Protectionism has shielded the French farmers from market forces for years and it shielded the French car plants this time.
  13. But lets face it a french company is not going to close french plants over british ones is it. Especially when its more expensive for them to to produce the cars in the UK! Its business economics that even I understand (and thats saying something!)

  14. spike7451

    spike7451 RIP

    Near me there was a factory owned by Morphy Richards.They made all the kettles for the worldwide market.They closed a few years ago simply because they could get them made in China or the like for something like 10 to 50 pence cheaper per unit than here in the U.K.
    The Great British manufacturing decade is over.We cannot compete with China,Korea ect simply on the diffences of wages making their products cheaper.
  15. The economy is already collapsing. If such a thread starts to get prominence on arrse instead of the more fiscally orientated forums such as housepricecrash then it is already underway. For example look at personal debt levels, there are 2 million with £10k of unsecured debt. Previously it was talked of the average debt per person as being around £15k. Why the change? because the former spins better and keeps consumer confidence and the pounds rolling on the high street.

    Another reason why the figure is so low is in the word "unsecured" Mrs dog and I were expecting the crash to happen in 03/04 but it didn't happen. We couldn't figure it out till one day off work I was watching the TV and every third advert was for a homeowner loan to consolidate your existing(unsecured) debt into one manageable monthly repayment(secured). so all we have done is delayed the inevitable.

    Looking at the markets on sky active all the indexes are in the blue, now before everyone trumpets out. "Ah that is were you are wrong Gundog the economy must be good if the FTSE is rising!" with a smug grin, I would recommend doing some research into the previous crashes and they will discover that the FTSE was at a high right before the house of cards came tumbling down.

    More info is available at if you want to know more. And I do not have a VI in hpc either.