FARMINGTON HILLS , Mich. — Chrysler Financial said last Friday it wouldn’t seek a $24 billion credit facility that was set to be renewed yesterday, as officials said the finance company had sufficient funds to continue underwriting auto retail loans.
Company officials said its business and funding needs were greatly reduced when GMAC Financial Services took over as Chrysler’s primary lender during the government’s restructuring of the automaker and its dealer network.
“Consistent with the U.S. government’s decision to name GMAC Financial Services as Chrysler Group LLC’s preferred lender, the level of funding required to support Chrysler Financial’s business is significantly reduced,” the company said in a statement. “While the company has decided not to renew these facilities, it continues to have adequate funding in place to acquire new retail business and meet our current obligations. In addition, Chrysler Financial will continue to service its existing $40 billion portfolio."