Chrysler to drop the leasing business by August 1st

Chrysler Financial, financing arm of Chrysler, has announced that it plans on exiting the leasing business. According to spokesman Bill Porter, the move comes after the tough market conditions.

"We are shifting our strategy to focus on retail products," said Porter. "Effective Aug. 1 we will no longer offer lease products in the United States. It is very difficult right now to offer competitive lease products. So we are switching our strategy."

Auto sales in the U.S. are at their lowest level since 15 years. As consumers shift away from pickups and SUVs, there has been a huge decline in resale prices for the segment that has forced automakers to take a sharp loss in the write down value of leases.

Source: Automotive News (Subscription Required)