Tuesday, September 30, 2008
Subaru issues credit crunch warning
Subaru's UK operation considered alternative stock funding in the wake of the banking crisis which prompted Lloyds TSB to buy HBOS earlier this month.
"We have about £65m worth of stock funded by HBOS, so when the shares dropped to 80p at one point we thought we'd be needing to make alternative arrangements," said the brand's managing director Lawrence Good.
He warned the current economic turmoil would have long term affects on the car retailing sector and could destabilise some retailers and car brands.
"At present to make a small fortune in the motor industry you start with a large one. The level of investment some of these groups have in their businesses, and the pressure from banks, has left a number of dealer groups and manufacturers quite vulnerable," he said.
"We've seen how major dealer groups such as Pendragon have been hit."
Speaking last week before the official release of the September sales figures Good confirmed the market was significantly down during the plate-change month.
"None of us can say what's going to happen in the next 12 months but currently the market is 30 per cent down, some manufacturers 65 per cent down. So we will see some big changes."
DATED: 30.09.08
FEED: MT
"We have about £65m worth of stock funded by HBOS, so when the shares dropped to 80p at one point we thought we'd be needing to make alternative arrangements," said the brand's managing director Lawrence Good.
He warned the current economic turmoil would have long term affects on the car retailing sector and could destabilise some retailers and car brands.
"At present to make a small fortune in the motor industry you start with a large one. The level of investment some of these groups have in their businesses, and the pressure from banks, has left a number of dealer groups and manufacturers quite vulnerable," he said.
"We've seen how major dealer groups such as Pendragon have been hit."
Speaking last week before the official release of the September sales figures Good confirmed the market was significantly down during the plate-change month.
"None of us can say what's going to happen in the next 12 months but currently the market is 30 per cent down, some manufacturers 65 per cent down. So we will see some big changes."
DATED: 30.09.08
FEED: MT
