US: GMAC to provide Chrysler finance
GMAC Financial Services has announced that it has entered into an agreement with Chrysler LLC to provide automotive financing products and services to Chrysler dealers and customers.
GMAC will be the preferred provider of new wholesale financing for Chrysler dealer inventory and has a four-year agreement for incentivised retail financing with limited exclusivity.
The US government has indicated that it intends to support GMAC in promoting the availability of credit for dealers and customers by making liquidity and capital available and by providing the capitalisation that GMAC requires to support the Chrysler business.
"GMAC is pleased to be part of the solution to restructure and stabilise the US auto industry," said GMAC Chief Executive Officer Alvaro G. de Molina.
"Providing financing options to dealers and consumers is critical as we work through one of the most challenging periods in the global auto sector. We will leverage our strengths and capabilities as the leading automotive finance company to serve our new customers, while maintaining our commitment to current customers.
"Serving as the primary source of financing for Chrysler is consistent with our strategy to diversify our automotive business," de Molina said. "We intend to work through the operational process quickly and effectively to ensure that the appropriate level of credit is available to support the sale of Chrysler vehicles."
GMAC will leverage its servicing platform to provide customer service for the newly originated assets. GMAC has not acquired the existing assets or liabilities of Chrysler Financial.
The majority of Chrysler dealers and consumers are located in the US, while there are smaller concentrations of business in Canada and Mexico and other international markets.