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.