It is a very good thing that Chrysler has maintained such good relations with our neighbors to the north. The latest news does not affect Nissan Dealers Boston but Chrysler is happy to announce that Toronto-Dominion Bank purchased Chrysler Financial for $6.3 billion. GM, who supplies the Chevrolet Malibu Bradenton vehicles, recently had a hugely successful initial public offering that helped the company financially. Now that TD Bank is going to be one of the largest lenders for North American auto purchases, Chrysler should have a less rocky path back to recovery. It is unknown if this deal would impact buyers who wanted to purchase a New Golf from their local VW dealership.
The auto industry has been an ever-changing market in the last decade or so. We saw peak sales back in 2000 and the lowest sales ever in 2009. Expert analysts are predicting a strong return now that auto loan lending requirements have become less stringent. The reins were severely tightened after high sales in 2006, and many well-qualified buyers were not able to obtain a vehicle loan. That has put people in the mindset to drive their current vehicles longer than usual, resulting in a lower supply of used cars and further higher prices for used cars.
Chrysler and GM both obtained financial assistance from the U.S. Government in recent years. GM’s first IPO managed to raise $23 billion and reduce the amount that the U.S. Government has an interest in the company to only 33%. Currently, Fiat SpA owns 20% of Chrysler and back in 2007 Cerberus purchased almost 80% of the brand from Daimler AG for $7.4 billion. Chrysler Financial is separate from the entire Chrysler name and they currently have $7.5 billion worth of outstanding loans from U.S. dealerships. The goal of TD Bank is to rename Chrysler Financial within the next year and strengthen the reputation of the brand.
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