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The car industry brought its decline on itself. Comment, with reference to the period since 1960 - Essay Example

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However, several factors caused the British Car Industry to perform inefficiently and ineffectively and most of the industry was eventually taken over by…
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The car industry brought its decline on itself. Comment, with reference to the period since 1960
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The car industry brought its decline on itself. Comment, with reference to the period since 1960

Download file to see previous pages... The government tried to play its role in curing the demise of the car industry in Britain. However, it ended up making decisions and policies that adversely affected the state of the British car industry. They include the steel rationing scheme, improper investments and development to support mergers, and unsuccessful regionalization policies. On the other hand, the management practices prevalent in the industry did not help its condition either. There was unsystematic authoritarian leadership, poor integration after mergers, and other improper strategies that also played their role in bringing down the growing car manufacturing industry of Britain. (Church, 1994)
This paper will shed light over the ineffective government policies and the poor management that, together, led to the demise of the British car industry. It also discusses some specific cases and examples from the history of Britain’s auto industry and points out where the mistakes were made and how management could have avoided them.
Some may argue that the government’s economic policies could have had an adverse affect on the development of the industry. The factors that may have contributed towards the meltdown of the auto industry in UK may include the steel rationing scheme, unsuccessful regionalisation policies by the government and the failure to maintain the development of the newly funded mergers.
After the success of the auto industry in the UK, in 1945 the multinationals expanded their factories in order to increase the productivity. The government supported this effort made by the multinationals as it would increase employment in the surrounding areas. But the scarcity of resources such as steel kept the government to keep the supply under their control also known as the steel rationing scheme; this prevented the firms to produce the maximum output.
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