Mandelson: No bail out

Time 13 years ago

LORD Mandelson has told the BBC the car industry DOES NOT need a bail out, but instead help offering finance.

The Business Secretary told the corporation that the industry was facing problems raising finance for buyers.

The Labour Peer explained that the Treasury was therefore considering offering commercial loans or loan guarantees to help the industry through troubled times.

The credit crunch has hit car finance arms hard making it hard for them to obtain credit for consumers.

‘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,’ Mandelson told the BBC.

‘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.’

The FLA has confirmed they are in discussions with the government alongside the SMMT and RMIF.

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