24/10/2008 - 09:14

AHG upbeat amidst GMAC fallout

24/10/2008 - 09:14

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West Perth-based Automotive Holdings Group Ltd says it is working to replace its existing network of finance providers after major financier GMAC Finance Services withdrew from the local market due to the global credit squeeze.

AHG upbeat amidst GMAC fallout

West Perth-based Automotive Holdings Group Ltd says it is working to replace its existing network of finance providers after major financier GMAC Finance Services withdrew from the local market due to the global credit squeeze.

Yesterday GMAC, which offered finance to both retail car and car dealers for showroom stock, said it would shut down it Australian and New Zealand divisions by the end of the year.

AHG assured shareholders today that its floor plans are provided by multiple financiers, including GMAC, which fund the company's auto inventory.

"AHG has been working towards replacing its GMAC facilities from within its existing network of finance providers as part of a review of its floor plan funding arrangements," AHG said in a statement.

"It expects to complete its new funding arrangements well before GMAC's withdrawal date."

Shares in AHG dropped 10 cents to 70c at 12:19 AEDT.

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