FRANKFURT - THE finance arms of three German car companies have agreed to ask for state guarantees to help them raise several billion euros in financing through capital markets, Der Spiegel news magazine reported on Saturday, giving no details of its sources.

In an advance copy of an article for its Nov 10 edition, the magazine said that the car banks of BMW , Volkswagen and Daimler would seek state backing to be able to tap fresh funds from the capital markets.

It said that the firms would seek no direct injections of capital from the government.

Spokesmen for Daimler's Mercedes-Benz-Bank and Volkswagen Bank declined to comment.

A spokesman for the financial subsidiary of BMW said the company had not yet decided on whether it would ask the state for support. However, if other car banks sought state guarantees, then BMW would join in to ensure it remained competitive, he said.

The asset-backed securities markets has dried up as a source of cheap funds for car banks in the global finance crisis, making it harder for the banks to lure buyers with attractive loan arrangements.

BMW had said on Nov 4 that no final decision had been taken on whether its own German or US banking subsidiaries should participate in rescue packages offered by the German government. -- THOMSON REUTERS