Unit 8 automobiles in modern society car industry

PRE-LISTENING SECTION

Exercise 1. Discuss the following issues.

• Have you, your friend or relative got a driver's license? What’s your attitude to driving? What main problems do our drivers face?

• Do you regard cars as the barest necessity of our life or as a profusion ?

Exercise 2. Match these words and phrases to their definitions or synonyms. Translate them into your native language.

1	ailing firm	a	always, eternally
2	shed	b	an abrupt failure of function; a breakdown
3	perennially	c	remove, lose, withdraw, get rid of
4	dowry	d	the act of reducing fossil fuel energy consumption in order to reduce emissions of the green house gas carbon dioxide in the pursuit to combat climate change and global warming
5	overcapacity	e	retribution for one's actions
6	carbon reduction	f	the situation in which an industry or business cannot sell as much as it produces
7	incentive	g	money or property brought by a woman to her husband at marriage
8	collapse	h	unsuccessful company
9	reckoning	i	motive, encouragement

Exercise 3. Explain the meaning of the expressions: bail-out, lease finance, home-equity, scrappage scheme.

Translate them into your native language.

Be guided by the following information.

Bail out in economics and finance is a term used to describe a situation where a bankrupt or nearly bankrupt entity, such as a corporation or a bank, is given a fresh injection of liquidity, in order to meet its short term obligations. Often bail outs are by governments, or by consortia of investors who demand control over the entity as the price for injecting funds. Often a bail out is in response to a short term cash flow crunch, where an entity with illiquid, but sufficient, assets is given funds to "tide it over" until short term problems are resolved. However, often bail outs are merely delaying the inevitable, as a government or investment structure attempts to avoid putting a large quantity of illiquid assets on the market, which would force other similar entities to write down their assets.

The bailing out of a corporation by government is controversial because bankruptcy can be seen as being caused by the failure to satisfy consumer demand; the bailing out is thus an instance of government intervention on the market overruling the will of consumers.

A lease is a contract calling for the lessee (user) to pay the lessor (owner) for use of an asset. A rental agreement is a lease in which the asset is tangible property. Leases for intangible property could include use of a computer program (similar to a license, but with different provisions), or use of a radio frequency (such as a contract with a cell-phone provider). A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership from lawnmowers and washing machines to handbags and jewellry.

A Car rental agreement may include various restrictions on the way a renter can use a car, and the condition in which it must be returned. For example, some rentals cannot be driven off-road, or out of the country, or towing a trailer, without specific permission. In New Zealand you may have to specifically endorse a promise that the car will not be driven onto Ninety-mile Beach (because of the hazardous tides). There will certainly be a requirement to show a driver's license, and only those drivers appearing on the contract may be authorized to drive. It may include an option to purchase auto insurance (motor insurance, UK), if the renter does not already have a policy to cover rentals—another important consideration for multiple drivers. Some agencies may even require a bond payable if the car is not returned in order, often held in the form of a credit-card authorization—voided if the car is returned per agreement. A renter should be advised that he or she will be responsible for any parking or traffic violations incurred upon the vehicle during the rental period. There should also be advice on handling thefts, accidents, break-downs, and towing. Further terms may include added fees for late returns, drop-off at a different location, or failure to top up the petrol immediately before the return. Finally, there may be provisions for making a non-refundable deposit with a booking, terms for payment of the initial period (with discounts, vouchers, etc), extended periods, and any damages or other fees that accrue prior to the return.

Home equity is the market value of a homeowner's unencumbered interest in their real property—that is, the difference between the home's fair market value and the outstanding balance of all liens on the property. The property's equity increases as the debtor makes payments against the mortgage balance, and/or as the property value appreciates. In economics, home equity is sometimes called real property value. Technically, home equity has a zero rate of return and is not liquid. Home equity management refers to the process of using equity extraction via loans—at favorable, and often tax-favored, interest rates—to invest otherwise illiquid equity in a target that offers higher returns. Home equity may serve as collateral for a home equity loan or home equity line of credit (HELOC). Many home equity plans set a fixed period during which the person can borrow money, such as 10 years. At the end of this “draw period,” the person may be allowed to renew the credit line. If the plan does not allow renewals, the person will not be able to borrow additional money once the period has ended. Some plans may call for payment in full of any outstanding balance at the end of the period. Others may allow repayment over a fixed period, for example, 10 years.

A scrappage program is a government budget program to promote the replacement of old vehicles with modern vehicles. Scrappage programs generally have the dual aim of stimulating the automobile industry and removing inefficient, high emissions vehicles from the road. Many European countries have introduced large-scale scrappage programs as an economic stimulus to increase market demand in the industrial sector during the global recession that began in 2008. Scrappage programs were touted with different names, mostly referring to an environmental benefit. The Vehicle Efficiency Incentive in Canada was based on fuel-efficiency of cars. In Germany the economic stimulus program was called "Umweltprämie" (environmental premium) and in Austria "Ökoprämie" (eco-premium) while most of the public referred to it simply as "Abwrackprämie" (scrappage premium). Other countries have not tried to connect the program title with an environment aspect - still the Italian "Incentivi alla rottamazione" (scrappage incentives) and French "Prime à la casse" (scrappage premium) require the new car to meet modern emission standards. The German scrappage incentive scheme and the British scrappage scheme do not have such requirements, and the UK scheme was openly sketched on the target to provide financial support to the motor industry. Similarly, the United States Congress devised a scrappage scheme, commonly referred to as "cash for clunkers," as part of a general Automotive Stimulus package series; however, the voucher is only given when the newer car has a better fuel efficiency than the old car.

In the 1990s, many countries had introduced tax rebate programs for new cars that meet a modern emission standard, but, with the Kyoto Protocol, some countries made the public offer dependent on the scrappage of old cars.

Other programs with the same goal of stimulating industry and increasing efficiency include the Cash for Caulkers plan to promote replacing old refrigerators, air conditioners, etc. with newer, more efficient appliances.

Exercise 4. Match car brands, countries and their capitals. Be guided by the information below.

Fiat	USA	Paris
Opel	Italy	Berlin
Bugatti	Germany	Tokyo
Skoda	Japan	Washington
Honda	Czech Republic	Prague
Chrysler	France	Rome
Hyundai	Great Britain	Beijing
Rolls-Royce	China	Seoul
Geely	South Korea	London

Vauxhall Motors Limited (pronounced /ˈvɒksɔːl/) is a British car manufacturer, owned by General Motors. Most current Vauxhall models are right-hand drive derivatives of GM's German Opel company; however, production of left-hand drive vehicles also takes place for export to other parts of Europe, and certain marginal markets. There are also several performance vehicles coming from Opel Performance Center (OPC) and Holden/Holden Special Vehicles in Australia. Vauxhall is headquartered in the Griffin House in Luton. In early 2009, the future of Opel was thrown into uncertainty as the global financial crisis drove GM towards bankruptcy. New GM Europe (Vauxhall plus Opel, minus Saab), is presently controlled by a trustee, with a controlling board made up of representatives from GM, employees and the German Government; the company was subject to a bidding process. On 10 September 2009, it was announced that Magna, a Canadian car part manufacturer, and Sberbank, a Russian company, would buy a majority stake (55%) in its European Opel/Vauxhall operations. GM would have owned 35% of Opel; while Opel employees would have owned 10%. The agreement would have kept Opel/Vauxhall a fully integrated part of GM’s global product development organization, allowing all parties to benefit from the exchange of technology and engineering resources. On 3 November 2009, the GM board called off the Magna deal, after coming to the conclusion that Opel and Vauxhall Motors are crucial to GM's global strategy. Duncan Aldred was appointed to the role of Managing Director of Vauxhall, in January 2010.

LISTENING SECTION

Exercise 1. Decide if the following statements are true or false according to the recording, prove your opinion.

1. Sergio Marchionne predicted that the economic crisis would finally come to an end in the world’s car industry.

2. The world governments haven’t subsidized their ailing car firms.

3. A lot of weak carmakers have collapsed waiting for the crisis to strike once again.

4. Federal bail-out and deals with prosperous companies helped Chrysler and Opel/Vauxhall to recover.

5. Opel’s new owners are threatening to cut some jobs and shut a couple of small factories in Belgium and Britain and kept their word.

6. According to industry estimates, overcapacity in Europe next year will be around 20%.

7. Overcapacity is the main structural problem confronting the carmakers.

8. The production of small cars is not profitable and the gap is plugged with profits from larger models.

9. Government aid, in the form of bail-outs and scrappage schemes, may have prevented outright collapse, but it has merely delayed the reckoning.

10. The car business will have to close factories to reduce overcapacity on the one hand, and consolidate into a smaller number of big firms to cut costs on the other in the nearest future.

Exercise 2. Listen again and answer the questions with the grounds provided.

1. What were the predictions made by Sergio Marchionne?

2. What are the main problems car industry face nowadays?

3. What measures are taken by the governments to help the ailing car companies?

4. How is the car industries restructuring outlined in the recording?

DISCUSSION SECTION

Exercise 1. Answer the following questions.

1. Do you approve of the idea of spending lots of money on car industries recovery?

2. What are the prospects of car industries development in Ukraine? What are the negative aspects of the problem?

Exercise 2. Comment on the ideas below.

1. Accidents happen since current drivers ride via roads of yesterday, in cars of tomorrow, at beyond tomorrow speeds.

2. Driver is just the most perilous unit in automobile.

3. The Bible contains many parts with modern meaning. For example, Noy’s story, he was searching for parking place in the course of all 40 days.

4. Everyone who has no car – dreams of buying it, while everyone who owns a car – dreams of selling it and does not do it as can’t go without it.

5. Currently there are two categories of pedestrians known only – nimble and dead.

6. Any car will serve you till your life end if to drive it furiously enough.

TRANSLATION SECTION

Exercise 1. Make the transcript of the recording and translate it into your native language.

Exercise 2. Present a translation-oriented analysis of the text.

Exercise 3. Roleplay the dialogue between

An experienced driver and a beginner, discussing the ideas of car industry and buying cars.

Exercise 4. Practise consecutive / simultaneous interpretation of the dialogue.

Exercise 5. Give the sight translation of the information into English, think out a title for it and expand on the ideas expressed.

В той час як американські міста синхронізують зелені сигнали світлофорів для поліпшення автомобільного руху та пропонують спеціальні програми з метою допомогти водіям знайти місце паркування, багато європейських міст, навпаки, створюють умови, відверто ворожі до автомобілів. Методи можуть варіювати, але місія єдина: зробити використання автомобіля дорогим і абсолютно незручним, для того щоб схилити водіїв до більш екологічно дружніх способів пересування.

Міста від Відня до Мюнхена і Копенгагена закрили величезну кількість автомобільних смуг. У Барселоні і Парижі проїжджі частини доріг зруйновані популярними програмами прокату велосипедів. Водії в Лондоні і Стокгольмі змушені вносити більшу плату за в'їзд в центр міста. І за останні два роки дюжини німецьких міст приєдналися до національної мережі «екологічних зон», куди можуть в'їжджати тільки машини з низькими викидами вуглекислого газу.

Міста-однодумці вітають нові торговельні центри і багатоквартирні будинки, але жорстко обмежують доступні місця для паркування. Вулична парковка зникає. В останні роки навіть колишні автомобільні столиці типу Мюнхена перетворилися в «рай для пішоходів», за словами Lee Schipper, старшого інженера-дослідника в Стенфордському університеті, який спеціалізується у сфері раціонального пересування.