According to reports in the European car
news, German and French
car manufacturers will also be able to tap into official
Government
banking funds. The
finance ministries of both
France and
Germany made it clear that the financing arms of
car companies could use state guarantees for new
lending .
Germany were reported as commenting: Car banks can definitely
participate in the scheme. In France, an official reportedly said:
If you are a
bank specialised in providing
credit for the purchase
of cars you need access to the wholesale
markets like any other bank.
The
car finance arms are a major contributor to operating profits
at many European car companies, expert analyst said. Carmakers are
facing a rough ride as demand for
new cars plummets.
However, at this stage, major car companies such as
Volkswagen,
BMW,
Renault and PSA Peugeot-Citroen have said that they will not
need to use this scheme.
