Comparative Advantage and the UK

By Anthony Batty | 10 April 2005

What the Rover saga has really highlighted is the degree to which the modern world follows David Ricardo's idea of comparative advantage. The current talk in the media is of how it shows the UK cannot compete in car production and the recycling of the old arguments of manufacturing decline, etc.

What appears to have fallen under the radar of the media, however, is the highly successful kit car builder Westfield Sportscars, whose cars are very much in demand (I believe they even have a waiting list). A long way from Rover surely? 13 Miles or a 20 minute drive according to the AA Routefinder. Maybe some of the newspaper correspondents should stop in for a factory tour while they are in Longbridge - "Westfield is proud to show off their factory every hour of every working day" states their website.

Westfield are just one example of how British firms can create high quality cars that people actually want. If it is allowed to go its own way MG may also flourish, it can then join the prestigious group with Lotus, Caterham, Ariel Motors (maker of the Ariel Atom featured on Top Gear) and many more. These companies are shining examples of why the government is right not to bail out Rover - while we as a nation are unable to make a successful mass production car, we excel in making a variety of others.