The Government’s Automotive Assistance Programme (AAP) Has Failed

Saturday, 8. August 2009

Still no money for motor finance. Back in March of this year the Automotive Assistance Programme (AAP) approved £2.3 billion of support to help, as ministers predicted, up to 100 companies through the crisis. To date not a penny has been paid out whilst those responsible for the pathetic scrappage scheme pat each other on the back. The provision of cheap wholesale money to lenders would get people back into new cars. In America, where they have similar problems and have staff looking into chat rooms and tweeting each other, it has been found that 85% of the remarks and discussions revolve around those that no longer want to pay cash for their cars, and those that want to borrow but are unable to arrange loans. The problem is unlikely to be different here. Whilst banks continue to hold onto their money, starving leasing companies and other funders that actually want to lend, of cash, consumers and the motor industry continue to suffer. It’s crazy. By Graham Hill