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Article: Chrysler Financial eases up on dealers.(NEWS)(GMAC L.L.C.)
- Article from:
- Automotive News
- Article date:
- August 24, 2009
- Author:
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Bradford Wernle
Bowing to pressure from Chrysler dealers, Chrysler Financial last week offered them easier terms to establish expensive reserve funds.
Some dealers said the reserves which can run into the high six figures threatened their financial stability. The lender says the reserves are needed to cover such risks as early loan payoffs and defaults of consumer loans.
Chrysler Financial rejected by the Obama administration as Chrysler Group's captive finance company in favor of GMAC Financial Services told dealers last week they did not have to pay off the reserves all at once but could pay monthly installments.
Chrysler ...