January 2009 Car News - GBCarLoans.com

10th January 2009

Lord Mandelson on Car Aid

Lord Mandelson Business Secretary says the car industry is an essential part of UK manufacturing. He believes the government should consider making some form of help for the financing side of individual manufacturers. He said that car manufacturers are facing great problems when raising finance for would-be new car buyers.
Lord Mandelson said told the BBC that the Treasury was considering offering commercial loans or loan guarantees to help the industry "bridge a very difficult period".

Talks are in progress between the treasury and the car companies about this issue. A spokesperson for the Society of Motor Manufacturers and Traders said they believed this action on providing help with car finance would be a great move but they believed that there would have to be alot more action taken. The SMMT is calling on the government to help companies to retain skilled employees and maintain investment in new technology. This will they believe ensure customers want to buy new vehicles.

John Lewis, chief executive of the British Vehicle Rental Leasing Association, welcomed the measures to improve access to credit but he believes it should apply to all providers of car loans, both for new and used cars, not just the manufacturers.

Lord Mandelson said that the car industry was an essential and permanent part of the UK's manufacturing but that the industry will have adapt to leaner times if it is survive. He said that is was possible that the demand for cars may never return to it's previous record levels. He said he believed it would be white collar workers in the industry who were more likely to be at risk of loosing their job positions in the future.

In the US, as part of its rescue of the car industry in December, the government has unveiled a $6bn (£4.1bn) rescue package for GMAC - General Motors' troubled car loan arm.

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