The Business and Enterprise Select
Committee’s report on government help for the motor sector has
criticised the fact that the Automotive Assistance Programme (AAP)
has yet to hand over a penny to motor firms.
The committee called the lack of action
“astounding”. Thus far, 19 companies have applied for loans.
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SMMT chief executive Paul Everitt joined in the
chorus of condemnation, commenting: “There is an urgent need for
the AAP to start delivering the support the UK motor industry
needs.”
The Finance & Leasing Association has reminded
the government that it must not forget car finance firms when it
comes to providing structural support for the motor industry.
FLA director general Stephen Sklaroff said: “Access
to well-priced wholesale funding is still a problem for many motor
finance providers and that means they may become unable to meet
customer demand for car finance.
“We have been discussing the issue with the
Department for Business since November 2008. We now need practical
action on schemes to help improve the availability and
affordability of funding.”
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By GlobalDataChairman of the Retail Motor Industry Federation
(RMIF), Paul Williams, added that while it was “refreshing” the
committee had remarked on the importance of the motor retail sector
as a conduit to sell cars, the sector needs long-term support.
He said: “The introduction of the vehicle scrappage
scheme has provided a boost to the sector at a critical time, and
this is recognized in the report.
“However a long-term view is required, and the RMIF
will continue to lobby for measures that enable the continued
growth of an efficient and productive motor retail sector.”
