The auto industry in the UK is feeling very anxious right now, they desperately need a helping hand in the form of government backed loans, much like the US stimulus package that helped keep some of the major automakers above water. However, many feel that the government is being too cautious and slow in finalizing the terms of loans. Car Rental, Van Rental, manufactuerers, retailers, and suppliers all require a quicker access to the loan contracts if they hope to stave off the current recession.
Its been Seven months since Business Secretary Peter Mandelson made the pledge that Britain would be handed out aid as car sales tumbled in the recession, declining for 14 consecutive months, and yet no agreements have been signed. Those involved are getting increasingly frustrated that the program doesn’t do anything to encourage banks to make loans. SO far however the aid agency has written up plans with 18 of more than 90 companies that expressed interest in loan agreements, so its not a complete standstill.
“It is important to understand that this scheme is about long-term investment projects,” the business department said. “With sums of this magnitude at stake we have to ensure that the assistance we offer is the right support to the right companies.”
MG Rover, once the nation’s largest carmaker, went bankrupt in 2005. At its 1960s peak, the company made 40 percent of the cars bought in the U.K. Ford has maintained the biggest market share and is followed by U.S. rival GM.
“The assumption is that they want to be careful that the money is being used to support jobs in the U.K., not just the companies in general,” said Graham Bushby, an automotive restructuring specialist at business adviser Baker Tilly.
Look, the American new car technology loans have been stopped dead in their tracks for almost a year aside from 3 companies that payed-to-play because Detroit ordered them to be stalled.. you can bet that Detroit does not want any sexy British imports over the pond bothering them either and that Detroit has used its billions to pull strings to get the British loans stalled too. Look at the money the Us just gave out for cars and car batteries, every dime of it went to Detroit or companies tied directly to Detroit. 98% of America was left out, only Detroit guys got it.