Chrysler Financial to get $1.5 billion from government

Update: AutoObserver is reporting that Chrysler has just launched zero-percent financing for up to 60 months on select 2008 and 2009 model year Chrysler, Jeep and Dodge models through Chrysler Financial, effectively immediately. Eligible vehicles include: Chrysler Town & Country, 300 and 300C, Jeep Grand Cherokee, Commander, Wrangler, Dodge Grand Caravan, Charger, Magnum, Challenger, Ram Pickup and Ram Heavy Duty.

Chrysler Financial will be getting $1.5 billion from the government to boost its ability to make vehicle loans, the U.S. Treasury said today. Executives at Chrysler said that the lack of available credit were hurting sales which were down more than 50 percent in December.

“We appreciate the Treasury Department’s support and their commitment to increase the availability of financing for consumers,” said Thomas Gilman, Chrysler Financial vice chairman and CEO. “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.”

He said that the funding will better position Chrysler Financial to tough it through the current economic downturn until other sources of funding become available through more traditional commercial sources.

Source: Detroit News