Automobile News

The worldwide economic crisis has entailed huge consequences to many big name Japanese automobile manufacturers, such as Toyota and Honda, that are normally resilient in the face of such pressure. Struck by unfavourable economic conditions, sinking demand in North America and Europe, as well as a strong Yen, Japanese carmakers have seen losses pile up and exports plunge. After the typically stalwart Toyota posted its first ever recorded operating loss and opted to cut production, including closing down domestic plants for 11 days, other companies are following suit. The latest cost cutting measure by Honda has hit the UK as well, as the manufacturer opts to shutdown its Swindon plant for a full two months, in addition to cutting domestic production of its automobiles in Japan by 56,000.

Honda had already announced its intentions to close the plant for the months of February and March, as the company has now decided to extend the stop in production into April and May. While the production cuts do entail lower wages for the Swindon plant workers, Honda insists no redundancies for automobile plant workers are on the horizon, and that the measure will in fact safeguard jobs. Workers have nonetheless expressed unease at the move and are afraid of what will happen next. Aside from the removal of 3,100 temporary jobs in Japan, Honda has not made significant cuts to its workforce, which includes 4,200 employees in the UK.

The car sales statistics in Europe are no less reassuring than those in the rest of the world, as December saw car sales in Europe fall by a staggering 17.8%, to an overall 7.8% decline on the year. The yearly decline was the worst in 15 years and the numbers do not bode well for any carmaker, including Honda. The forecast is even more grim in the UK where new car sales fell by 21.1% in December and unemployment recently hit an 11 year high.

Tags for this article: economy, honda, sales, swindon

Speed cameras, the nemesis of most British drivers. Originally invoked to help improve road safety and lower traffic accidents, many suspect the speed cameras are nothing but another tax grab on the part of the government. It seems that even some local governments feel this way as well, including Swindon council chiefs who claim they never receive any of the revenue generated from the infamous cameras. Indeed, all proceeds from the speed traps are directly funnelled into the treasury, bypassing not only local government, but also any funding for traffic police, improving roads, or other traffic safety measures. Deciding to stand up to what they view as an indirect tax on drivers, councillors in Swindon are trying to ban speed cameras altogether in favour of other less expensive ways of ensuring road safety.

The council chiefs estimate that speed cameras cost local residents up to £400,000 per year, and we can only imagine what the national figure is. Given that all of these funds flow out of the city and directly into the government coffers, the local government feels the money could be better spent. They want to completely scrap the speed cameras and instead use a portion of the money typically generated by the cameras for cheaper, and more effective, road safety enforcement. Some suggested alternatives include speed bumps and electronic warning signs. However, local MPs fired back by saying the speed cameras do actually increase road safety and that councillors were “playing politics with lives” by suggesting their removal. Supporters of the cameras also point to statistics that show cameras have reduced traffic accidents and fatalities by 65.6%. Apparently, the battle to remove speed cameras remains far from over.