Car Dealer Finance SPV for Ford Credit

Current Treasurer for Australia, Wayne Swan announced on Wednesday the the federal government will consider funding options in relation to financier Ford Credit in Australia.

"The government has been advised that the possible departure of Ford Credit from Australia would seriously jeopardize thousands of jobs ... not only across the Ford dealership network, but in the Australian car industry more broadly," announced the Treasurer.

It had been decided, according to Swan, that Ford Credit would be involved in the SPV (special purpose facility) which the government set up to help protect this sector.

Apparently up to $550 million AUD would be available to Ford Credit within SPV to provide short term dealer financing for the next 12 months.

A bill is due to be introduced into parliament to give effect to a commonwealth guarantee of securities of the SPV.

The SPV, according to Swan, was backed by major banks and only required contribution from government funds if a guarantee is called upon.