June 19, 2019

No end to auto blues as lenders reduce exposure

Mounting bad debt in the auto sector has resulted in leading retail banks seeking a high collateral for inventory funding—at times, 100% of the loan—making a dire situation worse for a large number of dealers, four people aware of the development from the automobile and banking industries said on the condition of anonymity.

Lenders are being extremely cautious about extending fresh credit to dealers because the outlook for several automobile manufacturers is bleak, said a senior banker. “The situation is particularly bad for a few manufacturers

Read more at https://www.livemint.com/auto-news/no-end-to-automobile-sector-s-blues-as-lenders-reduce-exposure-1560881102353.html

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