Toronto-Dominion Bank is with 25% ahead of targets for signing agreements with U.S. car dealers

Article by Christian A., on June 13, 2011

Toronto-Dominion Bank disclosed that its new auto-lending unit is approximately 25 percent ahead of its targets when it comes to signing deals with U.S.-based vehicle dealers. Last April, the bank acquired Chrysler Financial Corp. for approximately $6.3 billion and aimed to have around 5,000 dealers in its network.

Last Friday, TD Bank Group announced that Chrysler Financial is now named TD Auto Finance. According to Thomas Gilman, president and chief executive officer of TD Auto Finance, the unit has already signed up around 25 percent more than the 5,000 targeted dealers.

Toronto-Dominion aims to be a top 10 vehicle lender in the U.S. within three to four years and seeks to obtain assets of around $20 billion to $30 billion. According to the Federal Reserve, the demand for vehicle financing has accelerated after consumer borrowing in the U.S. rose in April for a seventh consecutive month.

TD Auto Finance has also taken over financing agreements that the parent company already had with about 4,000 dealers in Canada. Gilman expects the industry in Canada to grow at a slower rate than in the United States.

He said that the industry in Canada wasn’t hit as hard by the recession as the U.S. was. As a result, the ability to return to normal levels is not nearly as strong as it is in the United States.

In 2007, Cerberus Capital Management LP bought Chrysler Financial, along with the car manufacturer. According to TD Bank Group, the signage for TD Auto Finance will be placed in locations across the country in the following weeks. Also, advertising for the rebranded company will begin in late June.

If you liked the article, share on:

Topics: united states

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019