Chrysler Group LLC has announced an agreement with Santander Consumer USA Inc., a financial services company, to provide auto financing services to Chrysler Group and FIAT customers and dealers under the name Chrysler Capital.
Chrysler Capital is designed to provide Chrysler, Jeep, Dodge, Ram Truck, SRT and FIAT customers with competitive retail purchase and lease financing. It also will provide wholesale financing and related services to Chrysler Group and FIAT dealers. Chrysler Capital will be launched May 1, 2013.
"We expect Chrysler Capital to help Chrysler Group continue its sales growth by offering consumers the most competitive and innovative retail purchase and lease financing available in the marketplace," said Peter Grady, vice president of Network Development and Fleet for Chrysler Group.
"We found in Santander Consumer USA a nimble partner backed by the strength and experience of a worldwide banking leader. We have been impressed with Santander Consumer USA's capabilities, energy and attitude about selling Chrysler Group vehicles."
Under this 10-year, private-label agreement, Santander Consumer USA will establish a separate business unit dedicated to providing financial services under the Chrysler Capital name.
In addition to dealer new and used vehicle inventory, Chrysler Capital will provide financing for dealership construction, real estate, working capital and revolving lines of credit. Under the agreement, Santander Consumer USA will provide Chrysler Group with a nonrefundable upfront payment and a quarterly share of revenues.
Barclays was the exclusive strategic and financial advisor to Chrysler Group in its evaluation of auto finance partners and in this agreement with Santander Consumer USA.
"Santander Consumer USA is pleased that Chrysler Group has selected us to assist its dealer network in providing customers with competitive financing solutions," said Thomas Dundon, CEO and President of Santander Consumer USA.
"Our top priority will be to provide best-in-class service to Chrysler's dealer body and retail consumers. We are confident that this relationship will result in the most innovative branded finance solution in the market. The goal is to leverage an improved information flow that shows us how, as a finance provider, we can work with Chrysler to improve our offers to dealers and customers, to capture incremental sales."
"Ally will continue to provide financial services to Chrysler Group and FIAT dealers and their customers at the very least through the end of Chrysler Group's existing contract with Ally which will expire on April 30, 2013," Grady said.
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