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The British Motor Industry, 1945-1994A Case Study in Industrial Decline$
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Timothy Whisler

Print publication date: 1999

Print ISBN-13: 9780198290742

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198290742.001.0001

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British Leyland and Chrysler UK: Lock-In, Path Overlap, and Dysfunction, 1968–1977

British Leyland and Chrysler UK: Lock-In, Path Overlap, and Dysfunction, 1968–1977

Chapter:
(p.91) 3 British Leyland and Chrysler UK: Lock-In, Path Overlap, and Dysfunction, 1968–1977
Source:
The British Motor Industry, 1945-1994
Author(s):

Timothy R. Whisler

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198290742.003.0004

BLMC, Chrysler UK, and British Leyland operated in a national and world economic macroeconomic environment, shaped by the petroleum shortages of the 1970s, pronounced swings in car demand, escalating price inflation, and low economic growth rates. The British economy was affected by particular problems of low growth rates in personal disposable income and employment as well as unstable currency exchange rates, adverse balance of payments, active trade-union movement, and uncertainty of entry into the EC. BLMC and CUK management blamed these external factors for the decline of their firms. This chapter analyses the corporate troubles that afflicted these car makers. The problems of CUK and BLMC were historically developed, multifaceted, and pervasive. The rescue programmes were simplistic. The methods, beliefs, and operations of the 1940s and 1950s were overwhelmed by the changing competitive environment of the 1960s and 1970s.

Keywords:   BLMC, Chrysler UK, British Leyland, inflation, trade-union movement

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