Chrysler has officially entered into Chapter 11 bankruptcy with the hopes of emerging as a stronger company on the other side, but the company’s financing arm, Chrysler Financial, may not even be a part of the ‘new’ Chrysler.
In a speech earlier on Thursday, president Obama announced GMAC – the primary lending arm of General Motors — would be taking over vehicle and dealer financing for Chrysler, displacing Chrysler Financial. President Obama failed to mention if GMAC would remain as Chrysler’s main lender after the automaker cleared bankruptcy, but it appears Chrysler Financial could be out as Chrysler’s lending arm.
Chrysler Financial was denied further government funding earlier this month after some of its top executives failed to sign a waiver capping executive compensation. While there is no clear evidence linking the unsigned waiver to the ousting of Chrysler Financial, it would seem the two are linked in some way.
Cerberus Capital Management – Chrysler’s parent company – fully owns Chrysler Financial and has a 51 percent stake in GMAC.
04/30, 1:29 PM
posted by:
Lariat Luxury Locomotive Liner No.3
Cerberus is a gang of educated thugs…they’ll get their money one way or another.
04/30, 1:57 PM
posted by:
CADDY-V
And the rich stay rich. You gotta love America.
04/30, 2:28 PM
posted by:
Borat
Why would you want poor to drive a new Caddy?
04/30, 2:32 PM
posted by:
ahnuconun
I KNEW it was going to happen that way. The only reason Cerberus bought Chrysler was for Chrysler Financial. And I also knew Chrysler would be the one to tank before GM. How could they not, given the limited number of products offered, besides they’ve been on the verge of bankruptcy how many times in the past?
04/30, 2:53 PM
posted by:
freeyellow2000
Huh……
Cerberus owns parts of both GMAC and Chrysler Financial, so they could care less. If just the same wolves in different sheets.
In others words.. It a win-win situation for Cerberus.
04/30, 3:12 PM
posted by:
NRG
The execs at Chrysler Financial deserve what they got. They should have done the right thing in the first place and agreed to a cap on their compensation. Greedy bastards.
04/30, 3:43 PM
posted by:
orangecones
NRG, the thing is that the top dogs at CF are the same people that are the top dogs at GMAC. Sure some upper-middle level management at CF will suffer because of this, but so what as long as the top 1% keeps the change.
04/30, 7:13 PM
posted by:
Mutant@DCX
Cerberus… the three headed dog, I’ve seen better heads on a glass of rootbeer
04/30, 10:08 PM
posted by:
johnnycanuck
Again I’m going to play devil’s advocate here. Cerberus kept Chrysler alive the last two years and even though I’m sure they found the business of selling cars distasteful there are obvious signs that the corporation did not stagnate under their regime. In many ways I think Chrysler is much better positioned when it comes to future product than GM with its ‘all the eggs in one basket’ approach as it applies to the Volt. If this was their plan all along in regards to control of the financial end then more power to them, but somehow I find it hard to believe even they could have envisioned what has transpired.
05/01, 1:38 PM
posted by:
Scarface03
Not sure I agree fully with johnnyc about Chrysler. Is Chrysler better positioned since two years ago? Maybe, but perhaps only because some dog models were discontinued and they cleaned house in some other respects, but Chrysler is still lacking. I am not all that excited about the Challenger. Could be a matter of personal taste, but the Challenger I don’t think is widely regarded as being any better a choice than the Mustang, which has been out much longer. Chrysler is losing its halo car in the form of the Dodge Viper, which is not good news. Imagine the uproar if GM had to shudder a Corvette plant or two?