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Aussie car dealers call for government to act on credit crisis


Thousand of jobs could be lost if sources of wholesale credit for Australian new-car dealers aren't found, dealers' group tells Prime MInister Rudd.

Australian new car dealers have tonight called on the Rudd government to exercise decisive leadership and take action to find a solution to the finance crisis that could cripple the industry.

The Australian Automobile Dealer Association (Vic), the new car division of VACC (Victorian Automotive Chamber of Commerce) has urged Prime Minister, Kevin Rudd, and Treasurer, Wayne Swan, to realise the gravity of the situation and the potential for large-scale job losses if a solution isn’t found.

“The time has come for a decisive lead from the Federal Government on this crisis,” says VACC executive director, David Purchase (pictured).

“Time is running out for new car dealers. Those affected by the withdrawal of GMAC Financial Services and GE Money have only until December 31, barely five weeks away, to secure wholesale finance for their dealerships. Without it, they will close.

“AADA (Vic) and VACC are calling on the Government to put pressure on the credit providers to extend their 60-day deadline.

“It can take months for a car dealer to secure new credit finance, made worse by the credit crisis affecting financial markets. There are only 37 days left of 2008. Any dealer who needs new finance and doesn’t have it in place by now is at serious risk of closure. This could result in thousands of job losses.

“Drastic times call for drastic measures. This may be the opportunity for Government, credit financiers and dealers to explore new methods of financing the industry.

“VACC and AADA (Vic) have written to GMAC Financial Services, GE Money, State and Federal governments laying bare the gravity of the situation. We’re exploring every means possible to alleviate this situation,” Putchase says.

“We need a solution, and we need it quickly. For that we may need the intervention of Government.”

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