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Old 04-13-2012, 11:49 AM   #16
XDCX
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Quote:
Originally Posted by chryslersrt8 View Post
When you consider the longevity of Chrysler in Ally portfolio vs. GM stores maybe that's why. Longer contracts from longer ago. Also how few deals when Ally first started as well as leasing portfolio for Chrysler vs. GM. Our store wasn't involved heavily with Ally finance until recently. I know a number of dealers that use Chase instead of Ally.
Thanks for the comments - you make some excellent points.

In retrospect, I used the term "portfolio" incorrectly. Here's the excerpt from the news report that caught my attention:
In the fourth quarter, 6% of Ally's business came from Chrysler loans governed by its contract with the automaker but provides other loans to Chrysler buyers through business beyond its deal with the company.
Based on the above statement I'm guessing the 6% only represents retail contracts where Chrysler is subventing the finance rate as part of an incentive.
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Old 04-26-2012, 02:15 PM   #17
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In case you all missed the news Chrysler announced they will not renew with Ally giving them their 1 year opt out notice. Wonder how that will affect balance of term financing, especially ABC program and how will they handle dealer floorplan?

Can't get the article to cut and paste correctly. I read it on allpar.com today.
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Old 04-27-2012, 12:29 PM   #18
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My bet, for what it's worth, is Chrysler has no intention of breaking their relationship with Ally because they do not have a succession plan in place. I further speculate that the notification issue is a "non-event" because Ally will likely be split-up and sold off long before April, 2013 arrives.
Quote:
Originally Posted by chryslersrt8 View Post
In case you all missed the news Chrysler announced they will not renew with Ally giving them their 1 year opt out notice. Wonder how that will affect balance of term financing, especially ABC program and how will they handle dealer floorplan?

Can't get the article to cut and paste correctly. I read it on allpar.com today.
Here's a link to a news report from Crain's Detroit Business - click here

While I'll concede I was wrong in my bet above, I still believe that Ally will be split up and their automotive operations will be sold to General Motors.

As I understand it, the pact with Ally that ends in April, 2013 only pertains to the requirement that Chrysler finance a minimum percentage of vehicles with Ally using subvented interest rates. The rest of Chrysler's relationship with Ally, including Dealer Floorplans, remains intact and is not affected by this change.
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Old 04-27-2012, 12:35 PM   #19
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Default Grady's letter to the Chrysler Dealers regarding Ally

I received a copy of Grady's letter to the Chrysler Dealers explaining that Chrysler's decision to let the current “Auto Finance Operating Agreement” expire April 30, 2013 will not impact the Dealers' other agreements that are in place with Ally.

In my opinion finding another lender to handle Chrysler's subvented loans should be an easy task. The larger issue is what happens if Ally is split up and the automotive operations are sold to General Motors?
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Old 11-15-2012, 07:11 AM   #20
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http://www.autonews.com/article/2012...ncing-provider
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