On Friday, Chrysler LLC’s financing arm, Chrysler Financial, became the recipients of a $1.5 billion federal loan courtesy of the U.S. Department of Treasury’s Troubled Asset Relief Program (TARP). A relatively small portion of the $750 billion Wall Street bailout, the federal loan was extended to Chrysler Financial under the terms of the Emergency Economic Stabilization Act of 2008 and will provide Chrysler Financial with the fiduciary assets necessary to support Chrysler’s retail finance program. “We appreciate the Treasury Department’s support and their commitment to increase the availability of financing for consumers,” said Thomas F. Gilman, Vice Chairman and CEO – Chrysler Financial. “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.”
Proving to be a man of his word, before the ink on Chrysler’s government handout had time to dry, Chrysler LLC announced the launch of a new buyer incentive program for all potential Chrysler customers. Effective immediately, all qualified Chrysler LLC customers will be eligible to receive 0% financing for up to 60 months on certain 2008 and 2009 model-year vehicles. Specifically, Chrysler’s new incentives may be applied towards the lease or purchase of 11 models, including the Chrysler Town & Country, 300 and 300C; the Jeep Grand Cherokee, Commander, and Wrangler; and the Dodge Grand Caravan, Charger, Magnum, Challenger, Ram Pickup and Ram Heavy Duty.
Jim Press, Chrysler LLC Vice-Chairman and President, is enthusiastic about the far-reaching benefits of Chrysler’s new program. “From both a customer and dealer perspective, it is exciting news that the Treasury Department is providing funding to Chrysler Financial. Now our customers, including those with scores in the 620 range, will be able to apply for affordable loans and our dealers will be more competitive in the marketplace.” Press continued, “This will provide a great economic stimulus for car buyers across the country. We have customers who want to buy our vehicles, dealers who want to order vehicles and employees who want to build cars. Now with enhanced financing available in the system we can help our customers get the credit they deserve and help drive America forward.”