TrustMark Auto Group, Inc.
CNQ : TAF

TrustMark Auto Group, Inc.

November 12, 2008 15:49 ET

TrustMark Reports on Impact of Credit Crisis and Auto Sales

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 12, 2008) - Rod Hamilton, Chairman of TrustMark Auto Group, Inc. ("TrustMark") (CNQ:TAF) reports that due to the recent events in the credit markets and the related reduced sales volumes in the auto industry, management wishes to outline the implications these events have had and may continue to have on the TrustMark operations and general business model.

Credit and Liquidity Crisis

TrustMark is in the business of providing products and services to TrustMark Auto Authorized Dealers. These Dealers are exclusively engaged in the sale of pre-owned vehicles. The principal product TrustMark intended to provide to its Dealers is customer financing and it was anticipated that this product would be responsible for generating directly and indirectly the majority of the overall revenues for the company.

The ability of TrustMark to provide customer financing has been significantly and negatively impacted as Canadian lenders and credit granters have exited the market, raised interest rates or tightened credit requirements for borrowers. The current liquidity crisis and subsequent tightening of credit may last for an extended period and may affect TrustMark's ongoing ability to finance auto purchases, though limited financing solutions are being offered to Dealers.

Auto Industry

The auto industry is experiencing one of the most significant downturns in its history with little visibility as to when it may improve. The decrease in both sales and gross margins for the car industry as a whole has significant negative implications to TrustMark's business model.

With our Dealers generally selling fewer vehicles, the opportunity for TrustMark to sell "add on" products and services is reduced.

As a consequence of the credit squeeze and health of the auto industry, TrustMark has been negatively impacted and management is actively examining several possible options to ensure its continued operations.

TrustMark provides franchise quality products and services to Canada's independent auto dealers.

Further information on the Company and its business is available at www.trustmarkauto.com.

ON BEHALF OF THE BOARD

Rodney J. Hamilton, Chairman

Contact Information

  • TrustMark Auto Group, Inc.
    Rodney J. Hamilton
    Chairman
    (604) 628-1344
    (604) 628-1343 (FAX)
    Website: www.trustmarkauto.com