We all know the credit crunch has hit the world very hard, almost every industry has felt the wave of destruction that the financial down fall has brought to us. This being said there are some industries that are suffering more than others and this can truly be said for the vehicle manufacturing and dealer industry. The market is at its lowest point for decades with the sale of new cars dropping a dramatic amount.

But now Lord Mandelson, the business secretary has stepped in with a huge bail out package of around 2.3 billion pounds. Although this will have a major positive effect on the global situation via people still being in there jobs and the continuation of manufacturing new vehicles, I feel it could have a devastating effect in the long run.

Do not get me wrong I am all for bailing out successful companies that have misjudged the credit crunch and not financed around it, but I do not feel this is the same for most of the car industry. People are not buying cars, its not as people have there money invested in an industry like the banking sector, which always gets a rescue package. I say that if the product that a company is selling is not doing well than that surely is completely down to the company not meeting the demands of the industry.

Most people these days do not want petrol guzzling machines such as the Jaguars for two reasons, firstly because people travel a lot and it will cost them a lot more and secondly is that they emit to much pollution to the planet hurting the environment. Therefore this is the reason that these companies are struggling, not because there finances are out of shape it\'s simply because there product is not selling and probably will not sell even after the bailout.

It is all very well and good for people to start bailing out companies left, right and centre but I see the credit crunch as a positive approach. It will ultimately eliminate all of the bad bits of over saturated markets and when this is all over we may see a new healthy breed of car manufacturers coming through, that could in fact reinvent the way we drive and perceive vehicles, the new technology could end up taking us to new levels and making cars a lot safer and comfortable to drive around in.