Cerberus Capital Management-owned Chrysler Financial confirmed late yesterday that it will lay off about 12 percent of its 3,000-strong workforce. The cuts come both from the company’s Farmington Hills, Michigan, headquarters and its field offices scattered across the United States.
“Chrysler Financial continues to offer dealership insurance and consumer retail financing products and is focused on servicing and collecting its ongoing loan portfolio of approximately $26 billion,†Chrysler Financial said in the statement released to the media.
Cerberus, which owned more than 80 percent of Chrysler ’s car-producing operations until recently, maintains ownership of Chrysler Financial and its formerly General Motors-owned GMAC Financial Services counterpart.
The company has laid off about 29 percent of Chrysler Financial’s workers in two separate waves since the U.S. Treasury Department appointed GMAC as Chrysler Group’s financier earlier this year. The company is still struggling to maintain a business strategy since it no longer provides financing for new vehicle purchases. Its $26 billion loan portfolio covers dealership insurance and consumer retail financing.
