Auto industry bailout may not be enough, recruiters claim
29-01-2009
There are fears that a government bailout package may not be enough to help the ailing automotive industry in the UK.
Earlier this week business secretary Peter Mandelson announced a £2.3 billion loan guarantee which it is hoped will prevent the industry from having to make further job cuts.
However, some employers have met the plan with scepticism, saying that it is redundancies in related second-tier suppliers that is hitting business hard.
Speaking to Recruiter, Greg Latham, managing director of Encore Personnel, said: "I would suggest that there's no point in adding further money to the industry if people aren't buying the cars - until people start buying the cars they aren't going to increase production."
Around 200,000 people are directly supported by car manufacturers, according to the Times.
In related news, Personnel Today has reported that many automotive workers have had their hours cut as demand for vehicles slows.
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