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The area of my research is credit crunch effect on UK automobile

industry. Credit crunch start in 2007 and its effect liquidity shortfall in the
UK.its effect in financial management, housing sector, economic growth
and banking sector. Mostly in UK all automotive industry and financial
sector struggling with this situation. So most of financial sector and
banking system are affected according their connected with finance. But
now automobile industry is going through its worse time due to effect
credit crunch. In UK many automobile company like BMW, Jaguar, land
rover, mercedez,and other foreign based auto mobile company like
GM(General motors¶ )Chrysler,Toyota,asking for financial help from
government. In short danger alarm bells ringing for the automobile
industry. In 2008 car estimated sales at 128, 352, in comparison of
sharp fallen of 23% on October 2007.tearhis critical so difficult and its
getting a role to play worst year-on-year monthly drop since august
2007. (BBC, 2008)

I have divided my research proposal in six segments. In the first

segment the title with subject and those modules in our student portal
are being mentioned. And in the second segments shows what is the
significance of particular area of research and how it bearing to my
whole MBA course. In third segments identified area of research aim
and specific objectives. Literature review study is described in fourth
segments. When I have to collect all data gathering process than apply
for identification of research method is mentioned in fifth segments. And
in final segments it¶s prove the clear plan of survey.

The significance of the credit crunch effect on automobile industry

and its importance to your whole programme area.

In master foundation programme one of the modules like ACCONTING

DECISION MAKING TECHNIQUES studied and causes of credit crunch
in financial and banking division. And also we studied in MBA
SEMWSTER 1 the effect and causes of credit crunch in housing sector
and economic growth in studied our one financial management.

And in MBA SEMESTER 2 the modules BUSINESS STRATEGY IN

GLOBAL ENVIRONMENT and CORPORATE FINANCE, INVESTMENT
MANAGMENT AND CAPITAL MARKET those subject can help me to
understand and easily get to better idea to complete my dissertation.
And other modules MARKETING STRATEGY can assist to me business
strategy and chances in this strategy and how changes affect the
performance of the industry.

The effect of credit crunch on automobile industry gives the information

about present situation of automobile industry. This topic involves the
financial crisis of credit crunch like expenses, fixed and research
expenditure, and capital bound in prepared vehicles. What the restriction
and strict regulation of the UK government of the banking and financial
institutions has decreased the capacity of borrowing and buying capacity
of public. The automotive industry was damaged by a considerable
increased in price of the spare parts. So how can financial disaster effect
the decision of buyers to buy new car. In automobile industry big three
company like General motors, Ford, Chrysler they making production
planning and strategy to face survive in this situation. In the UK one of
the car company India based TATA take over the two car manufacturer
in UK like Jaguar and Land rover. TATA take the $1.5 billion loan from
the government to cope with the credit crisis.

The main drive of this topic is to get better idea of financial situation and
financial strategic planning of automobile industry passing through the
economic recession time. By data gathering by all fundamentals of
information this research will reproduce how and how much credit
crunch responsible for critical situation of automobile industry .many time
automobile industry struggling with less liable seems bad leadership,
price changes in fuel and oil, weak policy and development for position
is in front of by industry. Some economical, social and technological
factors affecting to automobile industry but still government involvement
in this matter. And also its effected employment, related industries, effect
on treasury of country.
This all research depended on financial crisis and how to evaluate
planning and strategy of financial crisis. And also this research
beneficiary for automobile suppliers and manufacturer and dealer. In the
terms of financial crisis word it¶s very critically identified. Financial
atmosphere like banks lending policies and buyers purchasing authority
to compose the future decisions. This data also beneficiary for outside
researcher and future economict, business analyses and with
educational area finance, corporate finance, marketing strategy and
those who MBA student work with multinational automobile company
can use these dates to analyse the different automobile company.

=
= 
 OBJ T

In my research I am going to look at the matter for credit crunch effect

on automobile industry in UK, and the effect of financial crisis in the UK
and also other faced by the UK automobile industry as an dependable,
relevant answers of particular my aims and objectives are:

1. What is the effect of credit crunch on automotive industry in UK

region?
2. To identify the source of the financial crisis in UK and relates to
past crashes in global environment.
3. What are government notice back side helping to the automotive
sector?
4. What development and plan of automobile sector to oppose the
insolvency and reform their success?
=
= QU
TO

In order to my inquiry and more concentration on my research into the

grow credit crunch in the automotive industry my goal to answer the
following research questions:

1. How does credit crunch in automobile industry relate to the present

financial crisis in the UK?

2. What are the cause crises for auto industry in the UK?

3. Is the credit crunch effect on automobile industry in the UK as a global

financial crisis or is it a challenge faced by bankruptcy and reform their
profitability?

LT =TU= =  

= T =U

Now latest issue credit crunch is the very crucial and hard word most
flaming issues for all industry like financial, economical, social and
technological. The credit crunch was start in august 2007 in USA
because of negligent lending and mortgage high rate because of
connected with finance sector and its started spreading in other
businesses and industries in all over the world.

Many author and researcher find out the meaning of credit crunch. Like
in 2008, Wallace, Avis, and Smith say exactly the credit crunch situation
when borrowing money comes that at the higher interest and borrower
has to pay higher cost. The credit crunch started in 2007 in US subprime
mortgage industry. According to Bernanke and Lown (1991) define the
credit crunch as a refuse in the supply of credit that is strangely outsized
for a given period of the business round. Credit normally fallen during a
recession, but an unusually large contraction could be seen as the credit
crunch.

redit crunch effect on automobile industry UK

Time being passing automobile industry passing through the recession

and its hit by many financial institutions. The figure shows that there is
decreased safe of cars in UK.According to BBC news And TOP GEAR
shows in UK they predict 40% fell in the month of March 2009 and that
sales wasn¶t last 25 years. Now many automobile companies in UK has
announced huge fallen in sale like 60% in BMW and 48% in GM(General
Motors),Ford car sale fallen with 38%.and many researcher predict more
worse in 2010.In this recession tome in automotive industry which step
companies will take against the credit crunch.

In the UK some borrower like bank of England, Lyods TSB, and citigroup
has changes in their credit score requirements for the auto loans, credit
cards, overdrafs, and personal loans. All this proving benefits so all
institution has increased their fees and rate of interest. The Santander,
Nationwide and HSBC bank make new strictly policies against the Home
and Auto loan. The researcher and Economist in the UK are more
bothered about other public car loan and insurance that can be posh by
credit crunch market.

During the credit crunch passing through automotive industry that time
auto manufacturer like GM, Ford, Chrysler, BMW, and Mercedes Benz.
And many auto manufacturer in UK asking to government to help to
carry on in this credit crunch time. And also UK government is giving to
little bit help to car manufacturer in UK at some level just seems banking
sectors. If UK government not awake up than problem with
unemployment in country and also import and export decreased
between world and UK automotive industry. If government would not
assist to industry than government would loss UK £110 billion revenue
and UK £146.2 billion tax next couple of year.

=
=  TO

For the point of this research, my whole research topic depends on

secondary data. Secondary data all ready collected from online source,
automotive articles, and automobile suppliers. To analysing the effect of
credit crunch on automobile industry in UK based market it is necessary
to identified academic research work that has been finished before on
connected topic. I am going to uses in my research three type of
secondary data: survry, articles and multiple sources. My first research
the literature will identified on credit crunch and its effects and effects of
credit crunch on automobile industry in UK.The background of study
related present condition of this automotive country and buyers¶ capacity
of borrowing and costs will also a matter of disquiet. I will use data such
as previous sales record of GM,FORD and CRYYSLER and banking
sector which is also involvement in credit crunch.Iterview will also be
used in data collection method; this will help to easily get reliable and
well founded that is relevant to my research aims and objectives.

All these research to check out the main reason discussed in earlier
research are true or wrong. So all secondary data collected by internal
and external source and it will analysis by keeping the all that type of
questions in mind that being examine in aim and objectives of research.
2rimary survey

In the primary data Interview can be prearranged, semi-arranged or

unarranged. For the primary research of automobile industry of UK.it is
not adjustable with to get interview with any car manufacturer, agencies
or managerial staff. Interview cant arrange to manager with face to face
and on call to mobile or visit to car showroom. That type of information
and financial statement can¶t get properly. So secondary data I will use
maximum level to finished my dissertation.

econdary data

On my point of view multiple source and articles can used my secondary

data these data will contain both from quantitative and qualitative
information. The quantitative data such as sales, expenses.bankruptcy
and all financial statement of car manufacturer its can be help in analysis
of different type of varience.the quantities will include the numeric data
like interest rate, sales figure of the BMW ,GM,CRYSLER,market share
of the car manufacturer, economic growth, and automotive price rises
and variation in this figures. Employment figures of industry will be used
and to make this numeric information more get idea and under stable the
calculation methods like mean, medien, mode and standard deviation
will be used. In UK credit crunch affected in automobile industry during
recession, government policies toward industry and much more
information will include. And also all this data I will use of one of
statistical method like regression and correlation.

This all data collected from online source, articles, journals, new paper,
BBC news,BBC news Top Gear. Some data collected form car
manufacturer annual report, survey done by other institutes on
automobile industry and banks lending institutions policies towards car
loans. Data collected from authorised sources to maintain reliability and
validity. The most of articles collected from online source and college
library and science Directs.

This all secondary data explain to credit crunch effect on automobile

industry in UK.in automotive industry which company well performance
in market and which development method and plan used in automotive
industry. How can UK government awake up to credit crunch affected on
credit crunch? Different type of car manufacturer follows different type of
planning and strategy so this connected the literature will be analy sed
for the reason of evaluation and thorough kind of topic.

ependability and Legality

Dependability and Legality worried about consistencies of quantity. The

data collected from secondary source which are more dependable and
genuine sources. All data collected and compare with each other so
quiet few get more reliable and validity of data. While a care will be
experimental during processing of data. But, the errors and omissions
during the handing out of data can guide towards hesitation about
consistency.

LTTO

There are some boundaries of this research. The maximum secondary

data will be used because it is quite difficult to contact managerial staff
of the car manufacturer company for handling data or face to face
interview with managers or on telephone. Limitation of this research
main problem is time limit and financial constraints it will not allowed to
visit any automotive car manufacturer company in UK so my whole
research depend on secondary data and information.

TL O
 =TO

Ethics of the research connected to issue about how we explain and

identified our research topic, the data gathering and processing method
and how to find out survey about this topic in a proper and liable
technique. When I will data collected mostly I use d quantitative data
used in conducting this research. I will use the quantitative data with
techniques used mean, mode, median, standard deviation. And other
statistical method used likes regression and correlation.

OLU
O

This all research will depend on secondary data. So research highlights

the financial condition in automotive market and how to resolve with
financial crisis and bankruptcy in automotive industry in UK.and expand
between these factor and fallen the automotive market. A suggestion
that will assist check or estimate a fallen will as well set forward.
=  = 

Wallace j. Avis,M .A .Smith (2009)´the credit crunch: A domino effect

³Business perspective University of Memphis articles in 2009 volume
20,page 60-64 reteived April 1st 2009 from

http://www.allbusiness.com/banking-finance-lending-credit-servoces-
subprime/10204236-1.html

TIMELINE: credit crunch to fallen April 7th 2009

from

http://news.bbc.co.uk/1/hi/business/7521250.stm

http://findarticles.com/p/articles/mi qn4183/is 20081121 /ai_ n31035452

British Automobile industry badly hit by credit crunch 0ctomber

2008

www.automobile-news.co.uk/industry

MARK EASTONs UK: Has the credit crunch left us poorer. 14th
September 2010

www.bbc.co.uk/blogs/...2010/

Qualitative and quantitative research retrieved 8th march

2009

www.medicine.ox.ac.uk/bandolier/booth/glossary/qualres.html

Credit crunch: crisis Management hits by Auto Industry

www.strategyanalytics.com

www.guardian.co.uk/business//2009/aug/19/creditcrunch.marketturmoilt
he
³Impact of the credit crunch on UK Borrowers Debt Mountain into
2008´Articles 2007 by Walayat N.

http://www.marketoracle.co.uk/Articles2734..html

Credit crunch Explained video Retrieved November 27 th 2008 from

www.bbc.co.uk/1/hi/business/7544275.stm

Credit Crunch .explanation retrieved November 2009 form

http://en.wikipedia.org/wiki/creditcrunch

Msn.com, car prices of GM, Ford, Chrysler, and Toyota

retrieved

Toyota Company research All Models and prices-MSN autos

http://news.bbc.co.uk/1/hi/business/6346325.stm

Credit crunch: small cars struggling with sales move

www.guardian.co.uk/business/2008/automotive.creditcrunch

BMW land where power meets control- UK BMW-CRIDIT CRUNCH

www.bmwland.co.uk

Crunch may drive Ford to sell Volvo to BMW-Times Online articles

5014601

Business.timesonline.co.uk

Credit crunch to Downturn BBCNEWS in business timeline

www.bbc.co.uk/1/hi/7521250.stm c

³The Credit Crunch´, Brooking paper of Economic Activity Written by

Bernanke, B.S, &Lown Issue.2 page No.205-248.
³Unravelling the Credit Crunch´ Written by David S.J.Murphy- Retrieved
June 25th 2009 from books.google.com

³DRIVEN´ Written by David Kiley, Inside BMW, the Most Admired car
company in the world retrieved august 17 th 2004.books.google.com

BMW Group: Investor Relations: Annual Report 2004

www.bmwgroup.com

Financial statements of BMW AG Financial year 2009

www. bmw group.com/...bmwgroup.../B_AG_Jahresabschluss_engl.

pdf c

Jaguar Land Rover must now turn itself into a viable business Hit by
RECESSION www.telegraph.co.uk/.../ =ecession-Jaguar-Land-Rover-
must-now-turn-itself-into-a-viable-business.html

Jaguar Land Rover boss: Recession could hit us for 3 years: Liverpool
Local newsc

www.liverpoolecho.co.uk/.../ Oaguar-land-rover-boss-recession-could-hit-
us-for-3-years-100252-22623167c

GM sales continually Downturn and Hit by credit crunch: According to

BBC News

www.bbc.co.uk/1/hi/7521250.stm

Credit Crunch hits cars, Ford, Toyota and GM Motors Retrieved by

October 10, 2008

www.100mortgages.org/.../ credit-crunch-hits-cars-ford-toyota-and-gm-
motors
Toyota Plan to Cut Global Output May hit UK plant-Times Online
business.timesonline.co.uk/tol/business/.../article6810389.ece

Vauxhall Hit BY the Credit Crunch: GM Headline

www.cararticles.co.uk/uk-vauxhall-hit-by-the-credit-crunch.html cc