Banks pulling out of the car trade

Mon, 08 Oct 2007



Lloyds TSB have announced that they will sell off Dutton Forshaw, drawing a close to bank involvement in car dealerships .

Lloyds will part with Dutton Forshaw for a reported price-tag of £60 million. The disposal decision, five years after the bank bought the dealership, marks the end of the banking sector being involved in the motor trade .

Dutton Forshaw was purchased by Lookers. The deal shortly follows the collapse of the Dixons group, owned by the Bank of Scotland, the last but one bank who had interests in the car industry.

A motor retail research analyst at Brewin Dolphin, Michael Vassalo, reportedly commented: "Banks were primarily interested in selling finance to customers but this has not really taken off, with stiff competition from the internet and other high street lenders . With the demise of Royal Bank of Scotland - owned Dixons group, this acquisition means banks are out of the motor trade . There are no banks with a stake in any top 30 group."
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