automobiles - depressed by the euro
WORKERS, SEPTEMBER 2003 ISSUE
Suppliers of components to the automotive assembly plants across Europe experienced a common theme during the summer months. The relative strength of the euro has been having an adverse effect on manufacturing in this sector.
Allied to this, the European and US carmakers both experienced under performance of the share prices.
There is no surprise that the auto sector in both continents continues to feel the effects of the current price wars and the ever-growing competition from Asian producers.
"There would be no benefit to the automotive manufacturing sector of UK industry if Britain joined the Single Currency," according to a worker in the polymer industry supplying into the car companies when asked whether it would be positive for Britain if it entered the Euro, and whether this would help stem the flow of imported vehicles from Asia.
Companies do not see the single currency as particularly important in their long-term planning, but the fact that they can move operations to whichever country offers the lowest labour rates is most significant.