Under new ownership, Chrysler Financial will look to sign up dealers at the National Automobile Dealers Association convention in San Francisco in February 2011 to boost its new-vehicle financing business to a goal of $1 billion per month by 2013.
With 2,300 dealers in the United States, Chrysler Financial will need about 5,000 dealers in Canada and the U.S. Toronto's TD Bank Group recently said it will buy the former captive finance company from Cerberus Capital Management for about $6.3 billion in cash.
Chrysler Financial CEO, Tom Gilman, said the company wants to hit the ground running after mainly sitting on the sidelines since April 30, 2009, when Chrysler Group filed for Chapter 11 reorganization. As part of its bankruptcy restructuring, Chrysler switched its captive financing relationship to Ally Bank, the former GMAC.
The Chrysler Financial portfolio of existing loans and leases narrowed quickly, since old loans were paid off much faster than the making of new loans.
Chrysler Financial never totally quit making loans, but failed to be competitive since there was no incentive money from Chrysler. [via autonews - sub. required]