GM, Chrysler 'choking without car loans'
Two giants of the US automobile industry are being choked by the lack of car loans available for consumers, a representative for GM has claimed.
Speaking to Bloomberg after the company produced the kind of weak sales figures not seen since the early ‘80s, GM’s commercial chief Mark LaNeve said that consumers were being refused car loans and could not afford to buy a new vehicle.
“This is what is choking us to death. If you can’t get credit, you can’t sell vehicles,” he lamented.
In a bid to get cash flowing again, president Barack Obama has put forward plans to lend as much as US$200 billion ($292.89 billion) to investors so they can buy up securities which are backed by car loans, credit cards and student loans.
At present, there are virtually no sales of these kind of securities in the US as they too have been tarred with the “toxic” stick by risk-averse investors.