A lawsuit alleging that the U.S. government acted illegally when it required Chrysler to close down 789 dealerships in order to be eligible for funding from the Troubled Asset Relief Program will be allowed to move forward, a judge ruled last week.
According to a report released by the U.S. Treasury Department this week, the government lost more than $9 billion on its bailout of General Motors Corp., Chrysler LLC and auto lending arms Ally Financial Inc. and Chrysler Financial.
On the same day the U.S. Department of the Treasury sold the last of its remaining 54.9 million shares of Ally common stock, Ally Financial revealed that it has received a subpoena from the Department of Justice related to subprime auto lending.
The industry is five years removed from the Great Recession. Accounting expert says that means the next cycle is looming and offers his take on what that means for dealers.
Industry associations responded this week to a New York Times opinion piece claiming that subprime auto lending is a predatory practice that stands to go the way of subprime mortgages.
Sales at Fla.-based Rick Case Automotive Group were up 28% from last year, with Memorial Day weekend sales surpassing all previous weekend sales records.
With its recent payment, the auto finance source has now returned more than 70 percent of the government’s $17.2 billion investment.
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