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Chrysler Partners with Credit Unions, Captive May Halt Floorplanning

December 17, 2008

AUBURN HILLS, Mich. — Chrysler LLC has brokered a deal with credit unions in 12 states to stimulate new-car sales, while Chrysler Financial is considering putting a halt to the $60 million-per-day flow of cash from its floorplanning fund, according to Bloomberg.com.

This week, Chrysler dealers received a letter from Chrysler Financial CEO Thomas Gilman describing the "troubling" rate at which dealers are drawing on the fund, and that further withdrawals may “force us to suspend wholesale financing.”

Dealers also received encouraging news from the manufacturer this week, as Chrysler announced that it has joined the Invest in America partnership to secure indirect loans from a network of credit unions. More than 2,000 credit unions in 12 states have pledged a combined $12 billion to support the program, which runs through June 30. Credit union members who finance their next vehicle at their participating CU will be eligible for rebates of $500 or $1,000 on select Chrysler vehicles.

The full text of the Bloomberg.com article can be found here.

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