British aid analysis of Leland.


British aid analysis of Leland.
The government’s rescue of the auto giant is not a new development – the British cooperated with Leland in 1974. Galerith, director of the automotive industry research centre at Cardiff school of business in wales, talks about the company’s history.
Host: Robert siegel.
The distressed company is not only the country’s largest automaker, but also a source of national prestige, the Wall Street journal wrote. Government aid is more urgent than political philosophy. This week is not general motors. Leyland, England, 1974.
(Soundbite) (British Leyland advertisement)
Unidentified man 1: when Leland started making a beautiful car, you’d get 10 cars named morris dock. Beauty and brains behind…
Siegel: excuse me for a flashback. When I lived in the UK in the early 1980s, the country was struggling with the consequences of the nationalisation of leyland a few years ago. Leland, England, then London, England, brings together some of Britain’s most famous brands under one roof, some of which have roofs.
(Soundbite) (British Leyland advertisement)
Unidentified man # 2: having fun in a sunny MG or triumph. They are now waiting for you at your English leyland dealership.
Siegel: but just as a witty person can remember, only the British can call that car a triumph.
What is BL, what it is and why it is Garel Rhys, director of the automotive industry research centre at Cardiff school of business in wales.
Professor rice, first of all, what is Leland?
Professor GAREL RHYS (director of the centre for automotive industry research at Cardiff business school) : Leland is the leading UK car company. It will be a world champion. Every company are getting bigger, so the UK needs a big company, the government will together two companies: Leland automotive company and the UK holding company, and British car company jaguar car company merger. And then you have morris and Austin, MG, that’s just in the car. There are other names in commercial vehicles.
Siegel: instead of becoming a national champion, it eventually became a national champion.
Professor RHYS: yes, by 1974, the company was clearly in trouble. Its product range is not popular, the strike is unique, the company has the so-called bargaining unit. They have 364 people who are bargaining at different times. Literally, the company has been trading capital, which means that if things go wrong, you might go on strike every week. Of course, management is not the best.
When you create a real Orwellian scale and complexity, it’s very, very difficult to really get involved in organized chaos. So at the end of 74, they started lending to the British government. But in 75 years, those loans were clearly not enough, and they bought the company’s equipment for the country. It has never really nationalised the law, but it is state-owned.
Siegel: when you look back at the cost of trying to save the British car industry, what did it cost, how much work was saved, what was the scorecard?
Professor RHYS: oh, scorecards are very, very poor. You’ll do it. There were still 30,000 jobs in the British economy before the collapse of the British company. But if you realize that this is all you can save, the taxpayer will not be required to spend the same day, 3.2 billion pounds, and today it is over 11 billion pounds. Even in the days when confetti was thrown into the world banking system, it was a tidy sum.
Siegel: now, I think back to the early 80 s an interesting point of view, that is in the UK, we may play a role of transplant car company in the United States and American carmakers Honda or Toyota clear clock. In fact, ford, the well-managed American car company.
Professor RHYS: that’s true. And the ford motor company is the only really effective operation in the UK, and people don’t think they are American. They may not think they are British. But they spent so long in the UK, from truck, bus, farm tractors, of course, cars and trucks, these products are so can accept and widely spread, so ford almost as British and roast beef. Maybe roast beef with a little cranberry sauce.
SIEGEL: professor Rhys, thank you very much for talking to us.
Professor RHYS: my pleasure.
Siegel: that’s galis. He’s the director of the automotive industry research center at Cardiff school of business in wales.


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