Skip To The Main Content

Car loans may help demand in trade

by  | 

To help Britain's struggling automobile trade the Government is thought to be considering making sure that loans are made available for people to buy cars, Gordon Brown has said.

The prime minister said the Government "will do what we can to help" the industry survive the recession and ensure the car credit market does not "freeze".

Jaguar Land Rover announced 450 job cuts, blaming a "severe reduction" in demand, and several other companies, including Honda and Nissan, have also cut production of new cars as a result of the fall.

Mr Brown said the Government has been in discussions with some firms about giving them assistance and that ministers were prepared to help with training their workers to give them new skills.

He was responding to a question during PMQs from Labour's Anne Snelgrove, MP for South Swindon, about the Government's plans for the industry in the economic downturn.

The Prime Minister said: "The car credit problem - that is loans for car purchase - it's basically a market that is outside the traditional banking industry and we have to look at what we can do so that that market doesn't freeze in the way that other markets have."

© Press Association 2009