THERE are many who doubt the wisdom of pumping billions of dollars of taxpayer funds into huge car companies.

One of those is Stephen Brooks, 60, who was one of the few customers out shopping for a new ute at Muirs Holden in Sydney yesterday.

He said he did not support more than $2billion being spent to rescue the industry.

“I don’t think they should give any assistance,” he said. “I think the Government should let them sweat for a while.”

He said that all government assistance packages tended to do was artificially inflate prices.

“It’s attitudes that need adjusting,” he said.

“Whatever pain the car companies are going to have to suffer, the Government is just postponing the pain at our expense.

“Eventually it’s the taxpayer who pays for it.”

Mr Brooks said he was choosing carefully before buying.

“Previously, if people saw something they wanted they bought it,” he said.

“Now everybody is thinking twice. And if they’re not at the stage of thinking twice before spending, they need to be.”

Des Frizelle, manager at Muirs Holden at Ashfield in Sydney’s inner west, said sales had certainly been affected by the global financial crisis and he hoped thebailout package would boost confidence in the industry.

“Retail is down — whether it’s cameras, suits or cars, people have backed off,” he said.

“They’re not spending money.

“We could do with a boost, but it is consumer confidence that is important.”

Mr Frizelle said some component suppliers had already shut down, forcing people to get equipment from countries with cheap labour.

While Muirs were not sacking any staff, he said, they were not replacing people who left.

“The global financial crisis has definitely affected the market — it’s human nature,” he said.

“Hopefully, Rudd’s financial package will build confidence within the motor industry, meaning there will be a future for people in dealerships and for car manufacturers.”

Mr Frizelle said he had watched sadly as Australian manufacturing declined since the 1970s and 80s.

The Federal Chamber of Automotive Industries has reported a drop of more than 11 per cent in the sales of new cars and trucks last month.

Credit: John Stapleton