Chrysler’s financing unit is in talks with the US government to change its status so it can tap into the federal Tarp scheme and other sources of credit. The Detroit carmaker, which received $4bn in government aid on Friday, said Monday that Chrysler Financial first applied three years ago to be classified as an “independent lending corporation” and that the talks have recently intensified. Unlike GMAC, GM’s financing arm, which received $5bn last month, Chrysler Financial is not seeking a bank charter. Even so, the proposed new status would give Chrysler “multiple sources of funding and cheaper sources of funding for the finance company”, said CFO Ron Kolka.

This entry was posted by Gwen Robinson on Wednesday, January 7th, 2009 at 5:34 and is filed under Capital markets. Tagged with Chrysler Financial, GMAC. Edit this entry.