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. 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.”
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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.
Director-general of the FLA, Stephen Sklaroff noted: “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.”
The chairman of the Retail Motor Industry Federation (RMIF),
Paul Williams, added that while it was “refreshing” that the
committee had remarked on the importance of the motor retail sector
as a conduit to sell cars, the sector needs long-term support.
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By GlobalData“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,” he said.
