It seems like the US isn’t the only place in the world that is having a tough time with their auto market.  It seems that Germany and France are also struggling to turn a profit in the car market.  Germany has gone so far as to cut hours for thousands of employees, while France is getting ready to pump 6 billion euros into their failing car market.  Bloomberg.com is reporting that BMW and VW are going to be cutting major hours for workers:

“BMW, the world’s largest manufacturer of luxury cars, will drop shifts for 26,000 employees in February and March, trimming its automaking by 10 percent, while Volkswagen, Europe’s largest carmaker, will shut five German factories from Feb. 23 to Feb. 27, affecting two-thirds of its 92,000-strong German workforce.”

This gives rise to one simple question: What is the point of all this?  If the governments of the world insist on pumping money into the car companies, don’t they understand that people who work for car companies aren’t generally buying cars?  What they need to do is have massive tax cuts for the population on the whole.  When the general population has more cash they will spend more on small and large ticket items.  If however you take that money in the form of increased taxes to bail out EVERYTHING you will see consumer spending dry up and die…which it is already doing.  Just my little bit of advice.

For more information about how to rent a car during 2009, contact Triangle Rent a Car today!

Tags: Uncategorized //