Certainly in the UK, the unions are pretty weak.
They have little/nothing to do with the current situation.
(In Germany and the US, for example, they are infinitely more powerful)
Back to the OP, and with no axe to grind (despite, personally, being wholly dependent on the industry surviving):
There is a worldwide credit crisis.
People simply aren’t buying ‘luxuries’.
Motor cars can be considered a luxury – as long as one’s current vehicle hasn’t died.
Motor vehicles, by their nature, have a large amount of capital tied into them (both as material and intellectual property).
Therefore, even after 15+ years of ‘lean’, ‘just in time’ processes the investment for any given, singular, vehicle commences years before it reaches a dealer – when the return on that initial investment starts to come back.
Cashflow, I believe it is called.
Regardless of legacy reasons for this, this is why.
Hey. It is far from a perfect industry in the UK, but this is worldwide.
In fact – the UK is a bit better off than some other auto-making countries.
At least we still make something… as opposed to shifting funds around, or selling foreign phones etc etc.