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BMW looks at applying for government aid

German car maker BMW is considering an application for government aid for its financial services arm.

Such a move would help BMW dealers to sell cars more easily, according to a report in The Times.

Dealers are asking the company for aid to ease the stockpiling of cars in showrooms but such aid would carry with it future costs.

In the UK, business secretary Lord Mandelson is also looking at the possibility of providing financial aid to the finance arms of UK car makers.

Earlier this month he said the British car sector was weak but did not need a bail-out.

“The Government is looking at a number of ways of helping the industry. One of the ideas that is being looked at is to help out the finance arms.

“We are looking at that to see whether it’s the best use of resources,” he said.

Lord Mandelson said he was very confident about the medium and long term

 

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