Abstract
The Credit Crunch started as a sub-prime crisis and led to decreased borrowing power; this diminishing credit supply is sending tremors across other industries as well. Economies across the world are shrinking and this has lead to uncertain times ahead for all of us. Nevertheless, automobile industry also seems to be effected by this credit crunch as: consumers who are ready to buy cars are not able to get credit, or those who get credits are not able to pay the high interest rates on the car loans. The years 2005 to 2008 saw an unprecedented rise and fall of oil prices. There has also been a consumer orientation towards environmental friendly cars. The automobile industry has been challenged by instability of external conditions and the unfolding of this present global financial situation has shown a substantial affect on the UK Automobile industry.