CARMAKERS have asked the Bank of England if they can take part in the quantitative easing programme to help kick-start vehicle sales.

The companies wrote 10 days ago asking if they could sell their loan books to the Bank. The deal would be channelled through a commercial bank, and would free up money that could be lent to new buyers.

Senior industry sources said no reply had yet been received from Bank officials. However, the Bank said last week that the Asset Purchase Facility – the scheme that enacts quantitative easing — “is open to all non-financial companies that meet the eligibility criteria”.

Industry executives remain sceptical, though, saying they had been disappointed with the Bank’s response to an earlier initiative that would have given car-finance firms access to low-cost loans.

Lord Mandelson, the business secretary, last week mildly chastised the Bank, saying he was disappointed talks had not moved faster.

The executives accuse the Bank of dragging its feet, pointing out that Ford’s finance arm first asked for assistance in November.

Further meetings with officials from the Bank, the business department and car-industry leaders are expected over the next fortnight.

Meanwhile, European officials have met to discuss the plight of General Motors Europe. GM in America is struggling to avoid bankruptcy, a move that would cast doubt over the future of its European arm, which employs 300,000 and includes Vauxhall in the UK.

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