Government may buy up car company assets

22nd October 2008, Comments 0 comments

Following the government’s plan to unfreeze the credit markets, car companies such as BMW, Daimler-Chrysler and Volkswagen can sell high quality assets to the state.

22 October 2008

MADRID -- Consumer finance companies and supermarkets could also benefit from the Spanish government's plan to safeguard the financial system, and receive an injection of public money in order to increase their liquidity. Names such as BMW, Daimler-Chrysler, Volkswagen and department store El Corte Inglés are among the brands that could benefit.

These companies, which have their own financial arms in order to reach the consumer credit market, could be allowed to sell high-quality assets to the government, news programme Noticias Cuatro revealed on Tuesday.

The government has announced plans to spend up to EUR 50 billion to buy up high-quality assets in an attempt to unfreeze the credit markets and get the economy moving again.

[El Pais / Expatica]

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