DETROIT -- Thousands of Chrysler dealers who face the loss of floorplan financing will have an opportunity to sign up with GMAC.
A senior GMAC executive said Thursday, April 30, 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.
During his White House briefing last week on Chrysler, President Barack Obama noted that the federal government would 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 Chrysler's 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. It's our expectation we can do that by the middle of May."
Initially, GMAC will offer floorplan financing to all Chrysler dealers on a temporary basis. As Chrysler emerges from bankruptcy, GMAC will accept or reject their floorplan applications using the same financial yardsticks that it applies to GM dealers.
"We are working with the government to bring the Chrysler dealers on, sight unseen," Muir said. "Then we'll go through a rapid credit underwriting process, which will take a couple of months. And then we'll take them on as normal customers."
As of March 31, Chrysler LLC had 3,215 dealers. It was not immediately known how many of them get floorplan financing from Chrysler Financial.