Chrysler Financial has announced it will restructure its business operations “to align operating expenses with current revenue expectations” due to declining vehicle sales, tight capital markets and the decision to shift some Chrysler Group retail business to rival GMAC. Its workforce will be cut by about 9% or about 350 people.
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Effective immediately, jobs have been axed at each of the company’s eight business centres across the US and at its head office in Farmington Hills, Michigan.
The financier is consolidating all US retail credit acquisition activities at its Great Lakes business centre in Auburn Hills, Michigan and closing the Kansas City customer contact center in Overland Park from 31 August. This location will account for 240 of the layoffs.
“While these were difficult decisions to make, they are necessary in light of our declining portfolio,” said Chrysler Financial chairman and CEO Tom Gilman in a statement. “We have made every effort to limit the number of job losses and to ensure the affected employees are treated fairly.”
The firm will continue to offer dealership insurance and consumer retail financing products, and to service and collect on its current loan portfolio of about $45bn.
“Chrysler Financial will continue to evaluate its business operations to ensure operating expense targets are in proper alignment with revenue opportunities,” the statement added.
