Chrysler Financial has received access for up to $1.5 billion in loans from the U.S. Department of Treasury’s troubled assets relief programme.
The funds, which became available under the Emergency Economic Stabilisation Act of 2008, will provide the necessary liquidity to support the company’s retail finance programme.
Thomas Gilman, vice chairman and CEO of Chrysler Financial, said: We appreciate the Treasury Department’s support and their commitment to increase the availability of financing for consumers.
This funding will provide us with increased capacity to help Chrysler LLC and our dealers make new loans available to qualified consumers and sell more cars and trucks. This funding will better position us to withstand the current economic challenges until funding becomes available through more traditional commercial sources. Jim Press, a Chrysler president and vice chairman, said: Our dealers have been telling us that maybe 20% of the customers or 25% of the customers that they’ve had have not been able to buy cars only because of restricted credit.
Chrysler Financial offers automotive financial products and services to both dealers and consumers of Chrysler, Jeep and Dodge vehicles in the U.S., Canada, Mexico and Venezuela. In addition it offers vehicle wholesale and retail financing to more than 3,600 Chrysler, Jeep and Dodge dealers. Currently, nearly three million drivers in the United States enjoy the benefits of financing with Chrysler Financial.
