financial Archives

Report: Chrysler Financial purchased by TD Bank for $6.3B

Filed under: Car Buying, Etc., Chrysler, Earnings/Financials

Toronto Dominion Bank has officially agreed to acquire Chrysler Financial. Cerberus Capital Management, the current owner of the Pentastar’s lending arm, will receive $6.3 billion from TD Bank in the deal. That figure marks a $900 million loss compared to the $7.4 billion that Cerberus paid for Chrysler financial in 2007 as part of the automaker’s takeover. Since then, Cerberus has been forced to hand the reins to the federal government as part of the bailout of 2008, and analysts from The Washington Post and Reuters feel that the capital firm is simply looking to be able to return some of the money that it lost on the Chrysler adventure to investors.

Meanwhile, Toronto-Dominion Bank continues to push its way into the American market. The bank already has 1,300 branches on our shores, and the new acquisition of Chrysler Financial will make the company one of America’s largest auto lenders overnight. TD Bank says that it anticipates auto lending to grow from a $700 billion business right now to over $900 billion in just three short years. With Chrysler’s ever-improving stable of products, if true, that likely means that the bank will see cash start rolling through its doors in a big way. Thanks to everyone for the tips!

[Sources: The Washington Post, Reuters]

Report: Chrysler Financial purchased by TD Bank for $6.3B originally appeared on Autoblog on Wed, 22 Dec 2010 13:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Continue reading “Report: Chrysler Financial purchased by TD Bank for $6.3B”

GM completes buy of AmeriCredit, to be called GM Financial

Filed under: Etc., GM, Earnings/Financials, By the Numbers

GM logo General Motors is just about ready to start offering in-house financing once again. Its acquisition of AmeriCredit is complete, pending approval by AmeriCredit’s shareholders. The merger is officially effective as of October 1st, 2010 and is an all-cash transaction valued at $3.5 billion.

The company will be renamed GM Financial. Having a captive finance arm allows GM and its dealers to expand finance and lease options, which is good news for both The General and its customers. GM Financial has targeted first quarter of 2011 to begin its initial leasing program.

You can read the full press release after the jump.

[Source: General Motors]

Continue reading GM completes buy of AmeriCredit, to be called GM Financial

GM completes buy of AmeriCredit, to be called GM Financial originally appeared on Autoblog on Sun, 03 Oct 2010 13:08:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Continue reading “GM completes buy of AmeriCredit, to be called GM Financial”

GM to Investors: Internal financial reporting controls are ineffective

Filed under: Government/Legal, GM, Earnings/Financials

General Motors Renaissance Center

Now that General Motors has submitted the necessary paperwork for its IPO to the SEC, Forbes read through the entire 734 page filing and found this curious tidbit: “We have determined that our disclosure controls and procedures and our internal control over financial reporting are currently not effective.” And yes, that means exactly what you think it means.

In case you think it’s only cautious puffery, the document goes on to say, “Until we have been able to test the operating effectiveness of remediated internal controls and ensure the effectiveness of our disclosure controls and procedures, any material weaknesses may materially adversely affect our ability to report accurately our financial condition and results of operations in the future in a timely and reliable manner.”

And there’s more, but the gist is that GM wants you to know that it might have to shuffle some of its past numbers at some future date. The problem seems to go back to early last year, when new accounting procedures were put in place to please the SEC. The General’s trip to ~~Narnia~~ bankruptcy and back, however, prevented it from fully vetting those procedures, so it can’t be 100% certain that they’re 100% accurate. It could actually just be caution on GM’s part, but nevertheless, some funny things are happening on the way to this IPO…

[Source: Forbes]

GM to Investors: Internal financial reporting controls are ineffective originally appeared on Autoblog on Sun, 22 Aug 2010 16:33:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Continue reading “GM to Investors: Internal financial reporting controls are ineffective”

Chrysler Financial to begin lending once again for Chrysler vehicles?

Filed under: Car Buying, Chrysler, Earnings/Financials

Chrysler Financial hasn’t been doing a whole lot since the domestic automotive implosion of aught-nine. When the Obama Administration’s Automotive Task Force found that the lender didn’t have the wherewithal to continue making large loans to dealers, GMAC was forced to take over lending duties for Chrysler. Part of that decision was due to the fact that last year, used car values were at one of their lowest points in decades. Since the majority of Chrysler Financial collateral involves used cars and trucks, that was a bit of an issue at the time.

But that was then and this is now. Used vehicle values have rebounded in a big way, and as such, word has it that Chrysler Financial is once again looking into making large-scale loans to dealerships across the country. Word has it that Tom Gilman, Chrysler Fianancial’s chief executive officer, has been contacting numerous dealerships in order to get a feel for whether or not there’s enough interest for the institution to return to lending, according to Automotive News. Even so, with most dealers now cozy with GMAC, it may be difficult for Chrysler Financial to reestablish itself as the titan it once was.

[Source: Automotive News – sub. req’d.]

Chrysler Financial to begin lending once again for Chrysler vehicles? originally appeared on Autoblog on Wed, 21 Jul 2010 17:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

Continue reading “Chrysler Financial to begin lending once again for Chrysler vehicles?”