Tightening Credit Market Places Dealers in Financial Uncertainty

Following GMAC Financial Services announcement that it would be withdrawing from its Australian wholesale and retail operations, the Australian Automobile Dealers Association (AADA) understands many of its members now face considerable uncertainty in terms of their existing finance arrangements.

For many dealers, these financing arrangements include the provision of floor plan financing and the provision of retail financing services. Such finance plays an integral role in the operation of Dealerships.

Given current economic conditions, Dealers may face challenges in re-financing. AADA recognises the difficulties that affected dealers may face and will assist its Members throughout this difficult time.

AADA notes that the Government has announced that it will soon release its response to the Bracks Review and has indicated that its response will provide greater certainty for the automotive industry.

AADA urges the Government to carefully consider the ramifications of the economic crisis upon the retail motor trades and the Australian automotive industry as a whole.


24 October 2008

For further information please contact Verity Jausnik of AADA on (02) 6273 4333.