01-16-2009, 01:34 PM | #1 |
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Conference Call - 01/16/09
Overall, I thought it was a very good Conference Call.
I thought they came up with a good solution on the curtailment problem - that should prevent a number of dealers from sliding off the edge and into bankruptcy. It was also intresting to learn that CFC's conduit still requires that they make the curtailment payments as outlined before. They're just going to act as the "buffer" and handle the pay-downs with their own funds. Concerning the 0% programs, I just did a Google News Search and saw that the story has already been picked up by the media. Any other thoughts? |
01-16-2009, 02:00 PM | #2 |
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I missed the call, did not see anything , I wish we had more notice!
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01-16-2009, 02:43 PM | #3 | |
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Quote:
Curtailments are no doubt a plus. Retail rates I’m not so sure about. The rates are very close to what is already available to us thru Chase subventions, plus we have 72mons with Chase. BUT maybe Chrysler will buy a little deeper… who knows? Very confusing yet again… I just signed up a big/local Credit Union so I have $1,000 CU bonus + rebates and their program OR Chryslers new program with $500 bonus but no rebate & nothing beyond 60mons OR Chase subvention rates & 72mons but no bonus cash. Anyone want to go drinking? |
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01-16-2009, 03:36 PM | #4 | |
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Quote:
The main topic was CFC's access to the $1.5 Billion TARP money and Chrysler's new 0% APR Incentives. They also discussed some changes to their curtailment policy which will take a lot of pressure off dealer's that are stuck with some aged units. It was a short call with no Q&A session - overall the message was very positive. |
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01-16-2009, 03:45 PM | #5 | |
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I don't know if the $1.5 Billion can be levered or not? A normal bank would take the $1.5 Billion Capital Injection and then make $15 Billion in loans using a 10 to 1 leverage ratio. I don't know if this is what CFC intends to do or not? If they can't lever the money, then $1.5 Billion's not going to last very long. News reports indicated that CFC did 50,000 contracts in December of 2007. If you assume an average loan of $20,000, that's a $1 Billion in loans per month. As always, time will tell. |
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01-16-2009, 05:54 PM | #6 | |
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I think I just found my answer....
Quote:
Here's a link to the BusinessWeek article: http://www.businessweek.com/autos/au...er_gets_g.html |
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