DETROIT (Reuters) - Chrysler LLC said its financing arm would stop offering vehicle leases to U.S. consumers, a sharp break in strategy in response to tighter credit and the plunging resale prices for gas-guzzling trucks.
The abrupt announcement on Friday afternoon was the latest sign of the stress on Chrysler from an industry downturn that has hit all automakers. Earlier this week, Chrysler said it would cut 1,000 white-collar jobs by the end of September.
The move comes as Chrysler Financial's $30 billion credit facility, backed by loans to consumers and dealers for vehicle purchases, is up for renewal in early August and the lender could see its borrowing costs rise amid the continuing credit market turmoil.
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Yep........the US car industry is going down the toliet and fast, Ford Record Losses beat out by Toyota who has the number one spot again this year, GM's mid line in trouble (middle class line)
People and businesses who were living on credit thinking things will get better, as by all Gerbil radio addresses etc. Now when everyone wakes up to all the lies, and credit card companies (was it 2 or 3 days ago the biggest banks that issued credit are having trouble) Just like the home mortgages will be hard to get, so will credit cards.........and then they will blame the people for using too much credit......like they blamed people for buying more house than they could afford.........not taking into consideration a job loss takes a huge hit on the middle class, that and lack of salaries going up, health care up, groceries, gas............utilities......nope they will blame it on the middle class.
And why do Credit card companies issue people such a huge line of credit 15K on up??
So this too will come home to roost (the Credit card issuers as in the big banks)when people default on payments?
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