Captive finance: Vorsprung durch emerging markets

Car manufacturers and their captive finance units might think themselves removed from much of the world’s financial turmoil. But are rapidly expanding emerging markets enough to keep the gloom at bay? Jethro Wookey reports.

EVEN IN A downturn, western economies are driven by cars. In the US especially, many people will forgo payments on a mortgage before sacrificing their personal transport. After all, the car might be the only way they can get to work. Consequently, successful car companies and their finance arms have often proved fairly robust in the face of souring economic climates. But there are signs that the turmoil might tell upon them this time around.

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