Lord Mandelson, the business secretary,
claims that the
car industry is an essential part of UK manufacturing, and the
government is considering helping the
finance arms of
car manufacturers .
Mandelson told the BBC that the industry would face problems
raising
vehicle finance to help buyers fund
new car purchases . Therefore, the government would look at
offering
commercial loans or
loan guarantees to help
car companies get through this period.
The director general of the
Finance and Leasing Association, Stephen Skarloff, was reported
by the BBC as saying: We are in active discussion with the
government to ensure that
motor finance
companies, along with other non-bank
lenders, have access to the relevant government liquidity and
guarantee schemes, so that they can get the funds they need to
serve their customers in the
motor and other markets.
Mandelson was reported as saying: No
car company is asking for a bail-out, they may be asking for
help in lifting
their motor finance arms, needed to fund
new car purchases . And it may be that in one case, commercial
loans or loan guarantees from the government to assist them to
bridge a very difficult period (may be needed) but that is not what
I would call a bail-out.
