Over-production; diminishing foreign markets; and Britain's import tariff and purchase tax, are three reasons blamed for the present recession in the European car industry., Unsold 'Dauphines' stand in their thousands in fields surrounding the Renault plant at Flins, France.
TGV Massed Vauxhall cars near Luton
CU.PAN. From Vauxhall sign PAN up line of cars
CU. Export sign 'Canada'
LV. Line of cars
TOP V. Ditto.
CU. Riley Radiator at Longbridge
CU. Wolseley Radiator.
TGV. Massed BMC cars.
CU.PAN.From Austin sign PAN to line of cars.
SV Number car awaits wheel assembly
LV.PAN.Triumph Heralds and sportscars on factory land on the Coventry by pass
GV. Massed Renault Dauphinesat Flins, France
CU. Flat tyre on Dauphine
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Background: Over-production; diminishing foreign markets; and Britain's import tariff and purchase tax, are three reasons blamed for the present recession in the European car industry., Unsold 'Dauphines' stand in their thousands in fields surrounding the Renault plant at Flins, France. Vauxhall 'Victor' and 'Cresta' models litter the storage parks at Luton, while Rootes and British Motor Corporation products overflow from assembly lines into rain sodden fields at Coventry and Birmingham, U.K.
Borgward, the German car manufacturer, announced Oct 20 that 2,500 of its 20,000 workers will be paid off. This is the second big staff reduction by Borgward since the beginning of the year, Goggombil and Lloyd, two Borgward subsidiaries, have announced sharp cut-backs in production. Both Renault and Borgward blame more competitive export markets in Europe and America.
It is estimated that more than 50,000 people directly and indirectly involved in Britain's car industry are unemployed or on short time. Redundancy notices at Rootes have led to strikes at their nation-wide factories, affecting more than 10,000 workers, Production schedules at Vauxhall Motors were cut recently to a four-day and four-night work, and involved the sacking of about 11,000 workers. The British Motor Corporation announced Oct 20 that it is to reduce by 2,000 cars a week. One third of the Corporation's 60,000 workpeople are to go on short time.
A spokesman of the British car industry described the situation recently as "a passing phase of the type that the industry has been accustomed to since its beginning.