I am pleased to announce that from 1 September the car dealer financing special purpose vehicle ('Ozcar') will be activated and able to provide critical liquidity support to car dealership financiers.
The Government's decision in December last year to establish OzCar provided stability for the car dealership financing industry and helped ensure that the withdrawal of GE Money Motor Solutions (GE) and GMAC from the wholesale floorplan financing market occurred in an orderly fashion.
This provided a much-need boost to confidence in the industry, allowing banks and other providers to step in and provide an alternative source of finance to the vast majority of former GE and GMAC customers.
As a result, many more dealerships have continued to operate through this difficult period, supporting many Australian jobs.
However it will still be necessary to activate OzCar so that the remaining GE and GMAC dealerships will have more time to secure ongoing financing. The activation of OzCar will also provide Ford Credit Australia with access to the liquidity required to continue to support its dealerships – most of which are in regional areas.
Treasury engaged an external probity adviser to examine matters relating to OzCar and Treasury has advised the Government that there is nothing to now preclude the activation of OzCar.
The Government has instructed Credit Suisse to take the final steps necessary to activate the special purpose vehicle and make funding available from early September.
All funds available in the special purpose vehicle have been provided by the major banks, with the Government providing support in the form of a guarantee.
New or mixed car dealerships currently financed by GE or GMAC that need to secure financing should contact the OzCar Programme Manager, Credit Suisse, on 02 8205 4891.
28 August 2009