The U.S. Treasury Department wants to broker the sale of Chrysler’s financing arm, Chrysler Financial. The Obama administration wants GMAC, GM’s financing arm, to purchase Chrysler Financial, the Washington Post reports.
GMAC, the country’s largest auto financing company, and Chrysler both lend money to dealers so they can buy inventory and lend money to consumers who need car loans to purchase vehicles from either company.
Although the Treasury is reportedly in a hurry to get GMAC to buy Chrysler Financial, other federal agencies have not given their support, the Washington Post reports.
The Treasury Department wants GMAC to purchase Chrysler Financial, a move it says is vital to saving Chrysler.
The administration says this sale is vital to Chrysler’s survival. Before GMAC can purchase Chrysler Financial, it would need a new round of financial support to help make the sale happen since it currently does not have enough money to buy it.
Even if Chrysler files for bankruptcy this week, industry and government officials say that keeping Chrysler Financial up and running is important because dealers rely on the company to purchase inventory and consumers need it to obtain car loans.