Chrysler CEO disputes report of loss of low-interest loans
Nardelli was responding to a Wall Street Journal report which suggested that Chrysler Financial's bankers are scrambling to avoid higher borrowing costs when the unit rolls over about $30 billion of short-term, car-loan-backed debt next month. If Chrysler pays more for its money, the Auburn Hills automaker may not be able to offer special rates on auto loans to entice customers to buy in a slow market, analysts say.
The credit review process under way is nothing out of the ordinary, Nardelli assured staff.
"As is customary for many auto finance companies, this renewal process takes place every year," he wrote in an e-mail sent to employees and obtained by The Detroit News. "We will continue to offer competitive financing and lease options for our customers and dealers."
Nardelli pointed out that the automaker is offering zero-percent financing for 72 months on Dodge Rams, among other offers.
Zero interest loans? Imagine that! The pea brain top brass in Detroit continue to come up with harebrained money losing schemes to further bury their companies in debt they can never recover from. What a way to manage a company. Instead of cutting production and costs they think that maintaining higher production while losing money just so they can show they sold more vehicles underscores how far out of touch with financial reality they are. And for this they get paid millions of dollars a year.