Manufacturing News

Car dealers feel the pinch

MORE jobs are said to go as the global financial crisis hits car dealers around the country, with many finance providers cutting back on lending to the local car industry.

Ford Motor Credit Company is the latest in a growing line of credit providers that have reduced lending to car dealerships around the country, with GMAC Finance Services and GE Finance already withdrawn from the local automotive market.

It has been reported that up to 40 per cent of the nation’s 3000 new car dealers could be forced to cut jobs in coming months unless they can find other sources of finance.

The Victorian Automobile Chamber of Commerce (VACC) has called a crisis meeting of car dealers, financial and legal advisors as well as state government representatives on Thursday in an effort to examine alternate finance options for car dealers at risk.

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