Aussie auto sales grind to a halt
The Australian auto industry has recorded its worse annual sales results in more than 30 years as business confidence has plummeted across the country.
Figures from the Chamber of Commerce and Industry show that investment plans – crucial to a sturdy car industry – have been scuppered by the financial crisis and have caused the industry to crumble.
The organisation is now calling on retail banks to pass on the recent rate cuts to businesses as they have to residential customers on the hunt for low-interest home loans.
The 14.5 per cent drop in car sales is the latest in a series of worrying blows to the industry, with departures from the car loan market at the end of last year raising fears that garages would be left unable to extend finance to motorists looking for a new car.
In a bid to combat this, the government put forward proposals to establish a car loans pool which would be dipped into by dealerships to offer crucial credit.