Thousands of jobs in the UK are under threat in the wake of the collapse of American car manufacturing giant General Motors (GM). The company has filed for bankruptcy in the US, leaving the future of all its staff uncertain. The European branch of GM, which includes Vauxhall in the UK as well as the German brand Opel, has already been sold off to Magna International, a Canadian car parts company.  But although this means that both the British and German brands will continue production, a fall in demand for car sales and car leasing deals could mean that Magna will be making significant job cuts.

The worry for Vauxhall is that Magna is a relatively unknown company in the UK, with ties to the Russian vans company run by oligarch Oleg Deripaska and the Russian bank Sberbank. The Russian involvement has raised worries about production at Vauxhall’s Luton plant, where they make Vivara vans, could be moved to Russia, leaving the Luton’s 1,400 workers without jobs. The German government also had a part to play in ensuring that the takeover was a success, leading to fears that all the company’s German plants could be protected and that if cutbacks in production and staff were necessary, it would have to happen in the UK. However this is all speculation at this point as Magna are still assessing the situation before making any decisions and have made it clear that they will do everything in their power to protect as many jobs as possible in all areas.

For Vauxhall’s 5,500 UK workers, all they can do is to remain hopeful that the company will recover quickly after the takeover by Magna, who obtained the company over other potential buyers including Italian car manufacturer Fiat. Car leasing and car sales will need to improve soon for the decision to keep factories open to be viable. In the meantime for buyers interested in purchasing a car from Vauxhall, car leasing could be a better option as it enables you to choose from a wider range of vehicles, and is less likely to leave you in a difficult position if the company suffers any further disaster in the future.

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Even though the idea of the scrappage scheme was good, buyers that are using the grant are loosing out because car dealers are not offering the same low price deals that they offer to anyone else.

The scrappage scheme is where the government gives you a £2,000 grant to scrap an old car that’s 10+ years old.

Not all customers will be denied the deal. Only people that choose to pay for the car over several years using a car manufacturers loan. New car buyers will be loosing out because car manufacturers who offer loans with rates as low as 4.0%, they are charging customers on the scrappage scheme up to 10% APR. This now means that it would be cheaper to sell your car on the side and get a lower APR.

Toyota is just one of the many manufacturers who are increasing the percentage rates on their loans for their customers that are part of the scrappage scheme. Toyota offers loan deals with annual percentage rates between.9 and 5.9%, based upon a series of factors. However, they have decided now that they are only going offer an 8.9% rate to participants of the scrappage scheme. This means that if you were to buy the new Toyota T2 Avensis, it would cost you £14,565 with the scheme, but once you pay off the loan, you will have payed an extra £2,699 which is almost £700 over the standard retail price.

Ford and Seat are yet another 2 manufacturers that are doing this to their new car buyers. Ford normally offer car buyers a 3.9 APR, however, if you are buying your new car as part of the scrappage scheme, you have to take the 7.9 APR that they have to offer. Seat is the worse of the 3, their loans normally carry a 0 APR, however, if you are part of the scrappage scheme, you will have to have a 8.9 APR.

This problem has occured because car manufacturers are being charged half the bill of the scheme, the other half is being picked up by the government. This has left many manufacturers annoyed and having to try to find the extra cash somewhere else, and it seems that they have found where.

So it sounds that it would be a better deal to sell your old car seperately and not participate in the scrappage scheme. However, there are different options that there rather than buying your own car. Contract hire is a method of owning a car that is often overlooked. By taking out a Ford lease you can get the latest cars at cheaper prices.

So before you choose to be part of the scrappage scheme, take time to consider your other options.

Thousands of workers at Honda’s Swindon factory have returned to work after production was halted for four months in response to the struggling car market. All 3,400 of the returning workers will be taking a pay cut until 2010 but are pleased that their jobs are finally guaranteed after the uncertainty of the last four months.

The factory was forced to close while the company decided on the best way of dealing with the problems caused by the global recession and the effect the economic downturn has had on the number of car sales and contract hire agreements. The car industry has been one of the worst affected and almost all car manufacturers are having difficulty staying afloat, but the situation at Honda and how they have recovered could stand as an example to other companies who are still struggling. Tamporarily suspending production at the Swindon plant has given them opportunity to discuss and make decisions about the company’s future as well as perform long-planned maintenance work. During the four months downtime the production lines were stripped down and rebuilt, and they took the opportunity to redecorate the whole plant, where possible by employees who had the specialist skills required for the job. 

But it’s not all good news. 1,300 workers from the Swindon factory chose to opt for voluntary redundancy at the time of the closure, many of whom still have not managed to secure alternative employment. And though the workers now have peace of mind that their jobs are safe, their pay has been cut by 3%, or 5% in management roles, for the duration of the next 10 months. The plant is only running at 50% of its normal capacity, with a predicted total production of 113,000 vehicles in 2009, less than half of the original 228,000 estimate.

In short, it’s a small victory but the company is not out of the woods yet, Honda car leasing and sales figures will have to increase significantly over the next few months if they want to avoid any further disasters. The new Honda Jazz model, due to start production at Swindon in September, should increase sales and give a clearer picture of the long-term future of the Swindon factory. Not to mention as the economy begins to recover buyers will be taking advantage of low car prices as across the board from Honda to Mercedes, car leasing and purchase prices are cheaper than ever.

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General Motors, one of the largest car manufacturers in the world, has filed for bankruptcy protection in America. For generations General Motors (GM) has been one of the big three car manufacturers in America and one of the largest in the world. Now the car industry is on its knees, and of the three biggest car manufacturers in America two have now been forced to seek protection from their creditors by declaring themsleves bankrupt. But what difference will all this make to us?

Well, for UK consumers, the answer is probably not much. If you have a car that was made by GM, there’s no need to worry about the future of your car and any parts you may need, as the company has not gone out of business entirely. After receiving protection from the American government, they predict the company will be reconstructed in as little as three months. In addition GM Europe, which consists of the British brand Vauxhall and the German Opel, has already been sold off to a Canadian company who have said they will do all they can to protect the 5,500 UK jobs at stake.

For consumers looking to purchase a new car in times like these, it could well be that leasing or contract hire could be a better option than buying outright, as it gives you more freedom of choice and wouldn’t leave you in the lurch later if the manufacturer did go out of business. Certainly if you are worried about buying a car by one of the main manufacturers tied to one of the companies that is at risk such as Vauxhall or Ford, car leasing could put your mind at ease.

Whether you’re looking for a handy little car about town or a fancy new BMW, car leasing gives you a wider choice of vehicles including those that may otherwise have been out of your price range for buying outright. Your contract allows for your estimated mileage and normal wear and tear to the vehicle, so your car won’t decrease its financial value over the course of the contract and when your agreement ends you get to swap the car for the new model of your choice. With the car industry in such a state of disaster, it could be the best way to make sure that any future disasters don’t affect you too much!

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While I was on my way to the office a week back, I was stuck in what seemed like endless traffic, I was getting really fed up. After a while I glanced over to the other side of the carriageway, to my astonishment for at least 30 minutes every car that went pass was so nice. There I was in my heap of junk while every one else was driving tremendous cars. I have to say where do they get them from?

After briefly thinking for a while I have come to the decision that there are only two ways of getting these brand new vehicles, please see below.

1) They buy the cars on finance, more and more people are getting things on finance that they really cannot afford to pay off, and then is ultimately why the economy has come crashing down in the first place. People go and get the best possible cars and then they cannot keep up with the monthly payments that they have committed themselves to for the next 10 years, so they end up trying to sell the vehicle and we all know that cars are always dropping in price.
2) In my opinion this is how a lot of people are getting their vehicles and it is the best possible way, something that could in fact overtake buying vehicles is car leasing. Car leasing lets you get a much nicer car than you could usually have, without paying for it all at once. You pay a monthly rate for a brand new car; you simply do not have to deal with repairs, MOTs or anything else. When your contract has ended you just hand the car back and get a brand new one.

To be honest the second option sounds so interesting that I might just go and get myself a new car on a lease contract tomorrow. it certainly sounds very tempting

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