UK sweeps in with car loans package
Article by Mozo
The UK has become the latest country to introduce new measures to try and prop up its auto industry, following in the footsteps of the US and Australia.
A new £2 billion ($4.3 billion) package has been launched in a bid to make it easier for garages to offer car loans to customers.
However, business secretary Peter Mandelson was keen to dispel suggestions that this was a last ditch effort to save the industry.
“This industry is not a lame duck and this is no bail-out,” he said, adding equally vehemently that the new package was not a blank cheque to the auto industry either.
Australia has been wrestling with a car loans crisis since the start of the downturn and has put forward proposals to plug the gap left in the financing market by the departure of GMAC from the car loans game.
The scheme would work by providing a collective cash pool that dealers could dip into to extend car loans to their customers.