Diversify, Diversify, Diversify. I'll wager that if the companies built an electric car that travelled distance at a quarter of the price of petrol, the public would rush. Thats the future of the motor industry.

The downside? Swivel eyed Treasury officials and Gordy's budget panic.

Michael Murphy, brightlingsea, england

The real bung that is going on is to the banks.
The country is being bankrupted in a futile attempt to prop up their mountains of debt, amounting to 400% of GDP, matched by assets which are not seen to be worth far less.
Losses are being passed to the taxpayer.
Cars are a sideshow.

David Martin, Bristol, UK

Polluting cars for the rich made by a foreign-owned firm ... it would be hard to come up with a less deserving candidate.

How would this be compatible with the government's hot air on carbon reduction?

John Page, Brookmans Park, UK

On Wednesday when Brown said “Every time a business fails it is our duty to act,” he was referring to companies with massive unionised workforces that can be relied upon to vote ZanuNuLab.

Chris, Newcastle,

of course they should give money to jaguar, if my business goes down and Gordi gives me his benefits handouts I'll probably be able to afford an XJ to replace my lowley X type next time.
May have to knock a few kids out for the payments but I've got 1..5 years before the replacement date!

Bill, st helens, UK

Gas guzzlers? NO ... My 2.2 Diesel Jaguar does 48 mpg. Which is nowhere near a gas guzzler.

Stephen Young, Horsham, UK / West Sussex

1.The truth is that the market for cars has collapsed.
2. Throwing tax payers money at car makers will not restore the market.
3. The market will recover when consumers have confidence that the economy is under control.
4. Government cannot control the market.
5 Tax concessions are necessary.

Tony Harrison, Horsted Keynes, England

Barking up the wrong tree.
Nobody can afford new cars due to exaggerated cost of housing.
You get more car for less money today than 20 years ago.
You get FAR less house for FAR more money than before - solve this and you solve most of the rest of the problem.

michael, Bromley, UK

Propping up uncompetitive companies to produce products no-one wants is throwing money down the sink. Demand can be increased by either reducing tax for the lower paid, as they will spend it or investing in infrastructure projects to aid recovery. The market will then decide who deserves to survive.

R G James, Brasschaat, Belgium

David from Ely may be too young to remember that the "job you started in the 80s" had been created in the 70s by greedy unions and feckless socialist politicians. I can't think of a single industry that failed in the 80s and didn't deserve to. The motor companies should get a fat ZERO of tax money.

Mike, Ipswich,

You are right, no bungs. Car manufactures have built for a market that is no longer there. But in the long term we need them. The answer is to mothball them until what they produce will sell. Meantime, they need to prepare to change their products.

Richard, Chesterfield,

Up until July, Jaguar Land Rover were forecasting a profit for 2008 of c. £500 million. This has now been downgrades to a loss for the full year. They are a highly effecient and ultra-modern businees that has absolutely no comparison to BL. The problem is the banking crisis.

Steve , Coleshill, U.K.

Good article, sensible argument. The trouble is that the incoming administration in the US is about to throw tens of billions of dollars at the ailing Big 3 in Detroit. Protectionist measures in the US will mean a competitive disadvantage for European carmakers, hence the SMMT's case.

krishna, London, UK

Spending our way out of debt

A B S O L U T E M A D N E S S

David, Huddersfield,

Jaguar Range Rover is not a British company, it is an Indian Company, they bought it 9 months ago, are you telling me that they only had a business plan for 9 months. The Indians bought 'a dog' If Ford could not make it work, how could the Indians? That however is their problem not ours!

Kevin Sullivan, Roehampton,

Mordwinoff,

Exactly, very good point. The cars in question are so poorly built, you'd be foolhardy to part with your own money in good times, leave alone bad.

Stevie G, Stourbridge,

"The problem lies not with producer or product, but demand: too few people can afford new cars these days. "

Exactly right, and given the number of special finance deals offered to people to get them to buy cars in good times, many were relying on (now vanished) credit to afford them even then.

James M, York, North Yorkshire

Mordwinoff,

Very good point that is often overlooked, JLR build a poor product, glitzy on the outside, shockingly engineered.

The educated stopped buying these products with there own money a long time ago, now even more people will stop for a multitude of reasons.

Stevie G, Stourbridge,

It is politically expedient for governments to be seen to be attempting to bail out car makers, in spite of the fact that the workers will be producing cars that few people will buy.
After all, these self same workers will be invited to cast their votes come the next election.

Peter Jones, Figeac, France

Another factor dissuading people from buying new cars is the clear threat from Gordon that he intends to massively hike VED: not only on large 4x4/gas guzzlers but also on standard family cars. He will backdate this tax rise to whichever yr suits him. Why buy a new car when you don't know future VED

Donna Walker, Effingham, England

The U.S. based carmakers and Jaguar/Land Rover are producing vehicle dinosaurs.These types are likely to be the first generation of hydrogen powered fuel cell cars and any government support should be for a quicker switch

Tony Gee, London,

I thought the Indians owned this company.Surely it is up to them to sort it out??

Living in France and driving 600 miles from home to Calais we now play a game counting the number of broken down Range Rovers & Land Rovers either stuck in Aires or on a trailer going North!!

Mordwinoff, Lisle, France

Where I live there is no "company car" culture nor prestiege in having the newest letter on the number plate. A car gets you to where you want to go and back again. Like in any business if you want to survive you lower cost or disappear. I suspect not many can expect government help in a recession

Michael Tindall, Christchurch, New Zealand

Why not stimluate demand by abolishing VAT on new cars for a period? Customer savings would be significant and they could then also negotiate 'deals' with the dealership.

Wouldn't this be much easier?

Paul, Bristol, UK

industries fail because they fail to respond to the market - not adapting, not being prepared, not innovating/investing in r&d...

Marco, Kraków, Poland

Interesting that Bush has purloined part of the moneys approved by Congress specifically to stabilise the financial sector to give the motor industry, part of the manufacturing sector, a bung.
No doubt he will excuse this illegal act by including himself in the list of end of termof pardons .

Stephen Green, Correns, France

In November, Jaguar sales year-on-year dropped 11% - yet BMW's were down 40%! Once the recession finishes there will again be a market for premium cars, and if the UK alone doesn't ensure its brands survive, those sales will simply go overseas - just like train-building post-Tory-privatisation.

Graeme, Dinan, France

Excellent, Until they "Reduce their "Cost Base" & "Restrict Distribution Cost's"! Nobody will "Buy"! Secondly basic "Borrowing cost is now 8%", Nobody wishes to "Take Up this "Fantastic Rate" with "Base Rate @ 2%!!!!" £300 Delivery cost for Buying your Product? Follow MFI & Woolworths!

Paul, Manchester, UK

The govt campaign against 'gas guzzlers' and 4x4's in one breath and subsidises them in another.

Insane.

But as ever this crisis, like 'global warming', will be used as an excuse to socially engineer society.

TrevorsDen, Wallingford, UK

This country bailed out BL for far too long and it went anyway because it was rotten to the core .
The infrastructure of a modern car plant is just as rotten , they have to go and be replaced .
Lets not do the " here's £20b " thing first .
Let's go straight to the new stuff with the £20b

Nick Dixon, Sutton Coldfield, England

One wonders, Dougie, whether it will ever again be possible to have a conversation - about anything - without somebody trying to interject global warming into the mix.

C. Heathcote, Tonbridge,

Jaguar does not simply supply British customers, rather it is an exporter of luxury cars around th world. Up until this global downturn, Land Rover managed to do it and make profits too.

If we are to play the EU no subsidy game, will that include the French? I somehow doubt it.

Jonathan Bywater, Huntsville, USA

I agree. No bungs. A more practical form of help would be for Government to bring forward orders for military vehicles (improved version of the Snatch Landrover) and ministerial cars (Jaguar). Also support of some kind for design/development/production of new-generation fuel-efficient cars.

Richard Shaw, Pinner, UK

Are you sure you don't just want to close the last of our manufacturing and finish the job you started in the 80s?

david, Ely,

Perhaps Mr Brown forgets that when he "helps" one deserving group there is an equal cost to someone else. Its true for grants, loans, subsidies, allowances, interest rates etc. There is also the cost of admin & market distortion to consider. But is it the help side that gets the headlines or votes?

N Reed, London, UK

Everyone who wants a car has got one, so why make more? The roads are jammed as it is. And then there's global warming...

The drop in sales is merely evidence of the good sense of the British people. Why would they want to subsidise the dinosaurs? Give each car worker help to retrain and move on.

Dougie, EDINBURGH, Scotland