Canadian Automobile Dealers Seek Federal Funding

Ottawa, Ontario (AHN) - Like Detroit's big three car makers, the car dealers' industry in Canada is knocking on the door of the federal government to seek financial assistance.

The Canadian Automobile Dealers Association's woes were caused by the drying credit market resulting from the global financial crisis. More Canadian banks are turning down auto loans, threatening to limit sales, the group said at a Friday press conference.

According to Hugh William, director for public affairs of the CADA, the association's 3,500 members sold a total of 1.6 million vehicles since January. But the phone calls CADA receive these days are not from potential car buyers, but from members who complain about the lack of credit.

The car sales industry has on its payroll 140,000 Canadians spread in different provinces.

CADA president and chief executive officer Richard Gauthier said, quoted by the Toronto Star, "Predictable and accessible credit is the oil in the auto industry's engine. Any effort by government to support the banking sector must be accompanied by a strong message to the banks that they must continue to support small, sound business."

Because of the dip in car prices, now as its lowest in 16 years, Gauthier said now is the best time for Canadians to purchase a vehicle.