Chrysler pulled the plug on leasing

[turkeyneck]

July 25 (Bloomberg) -- Chrysler Financial, the financing arm of automaker Chrysler LLC, will no longer offer auto leases to Chrysler dealerships, the Wall Street Journal reported on its Web site.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aKquHXL46Jus&refer=home

 

[Thermactor]

what are the implications here?

 

[50_Bip]

From an investor standpoint, not too much since it's a private company. From a customer standpoint, get a lease somewhere else.

 

[turkeyneck]

Quote from 50_Bip:

From a customer standpoint, get a lease somewhere else.

Like GM and Ford?

 

[central park]

the final straw in a decade long string of bad decisions by the dying company.

leasing makes huge money for automakers.


they are insane and hasten their inevitable demise.


CP

 

[turkeyneck]

Quote from central park:

the final straw in a decade long string of bad decisions by the dying company.

leasing makes huge money for automakers.


they are insane and hasten their inevitable demise.


CP

I think the residuals on their trucks and SUVs are close to 0 now. They don't want to get stuck with their cars at lease turn-ins?

 

[limit]

This is being done in an attempt to lessen the downstream liabilities for the asset sale that is around the corner. Sad, but true, Chrysler will be in unrecognizable pieces in less than a year.

 

[turkeyneck]

Quote from limit:

This is being done in an attempt to lessen the downstream liabilities for the asset sale that is around the corner. Sad, but true, Chrysler will be in unrecognizable pieces in less than a year.

Is the writing on the wall that Chrysler will be gone in less than a year?

 

[AutoMate]

Quote from limit:

This is being done in an attempt to lessen the downstream liabilities for the asset sale that is around the corner. Sad, but true, Chrysler will be in unrecognizable pieces in less than a year.

I agree.

Continuing to finance leases on their vehicles only makes sense if they care about pushing more product out on the road and keeping the thing going as it currently exists. Leases are inherently risky for the automakers and with such unpredictabilty in the automotive market place and U.S. economic woes, why continue to add more, difficult to price, liabilities to your balance sheet.

There are other plans, and they will play out over the next year.

 

[Mercor]

Maybe they have something up their sleeve like a new technology. maybe an electric car.

So they want to get out of the gas engine business