Although Chrysler ’s financial arm exited the auto leasing business as of July 31st, Chrysler Financial has announced that it has secured a $24 billion credit line. According to Chrysler, the fund will support the automaker’s dealer network and financial business.
According to The Detroit News, Chrysler Financial was originally seeking a $30 billion line of credit, but tempered its requirements “due to conditions in the credit markets and changes in the company’s retail strategy.”
Chrysler Financial decided to exit the leasing business last month due to the sagging residual values of returned leased vehicles.
“The liquidity provided by these facilities will enable us to support our dealers and their retail customers,” Tom Gilman, executive vice chairman of Chrysler Financial, told The Detroit News.
In addition, Chrysler also announced that it is ahead of its financing goals for the first part of the year. Although not required to report its financial results, the Michigan-based automaker said that it posted earnings of $1.1 billion — before interest, taxes, depreciation and amortization – for the first six months of the year.
