Thousands of Chrysler LLC dealers who face the loss of floorplan financing will have an opportunity to sign up with GMAC.
A senior GMAC executive said today that his company will sign up all Chrysler dealerships that now finance their wholesale vehicle inventories, or floorplans, with Chrysler Financial.
The lender also will provide retail loans to customers of Chrysler dealerships. As of March 31, Chrysler LLC had 3,215 dealers.
During his White House briefing on Chrysler today, President Barack Obama noted that the federal government will not loan Chrysler Financial the money it needs to stay in business.
Instead, the president said the government would give GMAC additional financing to service Chryslers dealers. And GMAC is jumping at the opportunity to expand. We will step in and fill the gap, said GMAC President Bill Muir. It involves a few thousand dealers. Its our expectation we can do that by the middle of May.