Chrysler Chief Executive Bob Nardelli is asking for another $1.5 billion from the US government to fund the company's financial arm, which would allow for more loans to individuals that haven't been able to qualify.
Due to the credit crunch it has become increasingly harder for individuals to receive financing, since banks are now requiring better credit scores and higher down payments.
In January the US government gave $1.5 billion to Chrysler Financial, which allowed Chrysler to subsidize zero percent interest loans on new vehicles.
Nardelli recently told CNBC, “I’m not suggesting we go back to where we were in this country,” Nardelli said, referring to the easy credit in housing and auto markets. “But the pendulum has swing dramatically the other way. Our consumers could not get financing. They have had to put from 5% to 15% cash down.”
Through February, Chrysler's sales are down 49 percent compared to the same period last year.
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Comments (7)
I'll be more receptive to the numbers NEXT year. Chrysler has killed 5 models, and has almost completely stopped selling to fleets, so this ''down 49 percent'' talk is fluff.
Well, there are people that like what they're selling, and they've downsized bigtime, so lets get credit into the hands of buyers and get this economy rolling again (no pun intended)
Posted by Memphis | March 17, 2009 7:28 PM
Posted on March 17, 2009 19:28
I think this is exactly what Toyota and Honda wanted and no one really minded then so I am sure no one will mind now.
Posted by Mike | March 17, 2009 7:34 PM
Posted on March 17, 2009 19:34
Of course Chrysler sales are down 49%, how can they not be down? As "Memphis" pointed out, Chrysler has eliminated 5 models and stopped selling to fleets. Duh! Of course sales are down, this is what Chrysler wanted to happen.
The sales numbers that need to be taken into consideration are the volume of vehicles sold to the general public. If you look at those numbers, yes sales are down from last year, but then again, so are the sales of just about every other manufacturer out there.
On the flip side I just read an article online that indicated for the month of February 2009 Chrysler sold the most vehicles in Canada for the first time in its history. GM had been # 1 for 75 straight years until last month.
I also had the opportunity to test drive the Dodge Journey for a day as part of a freelance vehicle reviewer for my local newspaper and I have to admit, it's without a doubt one the best vehicles that I have reviewed lately. In fact I was so impressed that I am considering buying one as my daily driver.
Way to go Chrysler!
Posted by Mr. D | March 18, 2009 5:10 AM
Posted on March 18, 2009 05:10
@Mr. D
I also got a look inside a new Dodge Journey and I was also impressed and I think that the styling is pretty good. For a crossover I think it looks really good, there are quite a few of them on the roads by me.
Posted by Jeremy | March 18, 2009 6:09 AM
Posted on March 18, 2009 06:09
@ Mr D and Jeremy
It should be no surprise that you liked the ride. It is essentially a Mercedes ML-350 class chassis with a different body and motor. If you look under the hood near the back on the firewall, you will see MB logo.
It also uses the same IR transmitter key that all MB have been using for years.
Posted by Andrew | March 18, 2009 6:29 AM
Posted on March 18, 2009 06:29
So they basically want money to help cover the people that are going to default on the loans they want to give. This is dumb. The solution to the current economic problems is not to make it easier for people to borrow money. Lets hope the gov doesn't listen to their pleas.
Posted by gm0n3y | March 18, 2009 1:43 PM
Posted on March 18, 2009 13:43
What they need to do ask for money to build better plants to make better vehicles and make more jobs and help the economy get back up and rolling agen.
@gm0n3y
That's funny. Not too long ago Toyota did this same thing and you did everything you could to defend them on it.
Posted by 426Hemi | March 19, 2009 12:43 PM
Posted on March 19, 2009 12:43