93% of Chrysler dealers have financing agreements, says GMAC
By Andrew C., 26 Aug, 2010. 0 Comments
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The applications of about 93% of the 1,474 Chrysler Group dealers for wholesale financing credit lines have been approved or are near final approval. In a statement, GMAC President Bill Muir said that the company continues to work with the few remaining dealers that have conditional approval. When Chrysler went into bankruptcy last spring, GMAC was appointed by the Obama administration to replace Chrysler Financial as the finance company for Chrysler dealers.
Chrysler dealers who had been floorplanned by Chrysler Financial were forced to negotiate new floorplan lines with GMAC or find other banks. The negotiations didn't go smoothly. The number of dealers on conditional approval has dropped to 14 from 40 in November, the last time the finance company reported its progress.
The applications of 83 Chrysler dealers were declined by GMAC for "failure to meet credit standards." A majority of these dealerships were previously on "finance hold" with Chrysler Financial and were notified by GMAC in June of 2009. Many have been in liquidation for some time.
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