Financial Times FT.com

European car dealers thrown lifelines

By John Reed in London and Daniel Schäfer in Frankfurt

Published: November 11 2008 19:45 | Last updated: November 11 2008 19:45

The credit crisis is forcing some of Europe’s biggest carmakers to throw large financial lifelines to their dealers.

The increasing need to prop up dealerships will add to their managerial and financial burdens in an already gruelling year. However, carmakers say they have little choice when faced with sharply slower sales and a tightening of vehicle credit that threatens to wipe out parts of their sales networks.

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