The government has kept the car industry in the dark over this afternoon’s announcement of a financial aid package.
Lord Mandelson will reveal details of the package in the House of Lords on Tuesday afternoon at 3pm, pre-empting tomorrow's meeting with car makers. It is still unclear whether the meeting will go ahead.
“There’s been no contact between the government and the car industry since November, so we’re going to find out what’s in the package when we watch TV this afternoon,” said an SMMT spokesperson.
“At the moment, though, we’re also working on the basis that tomorrow’s meeting will still happen,” the SMMT added.
The centre of the package is believed to be a change of rules to allow car finance arms to benefit from the “special liquidity arrangement” extended to the banking sector before Christmas, which currently excludes consumer credit operations.
That would get low-cost finance flowing into car maker and dealer finance arms to stimulate new car sales.