Chrysler Financial to cut about 350 jobs in restructuring

Posted on Wednesday, July 1st, 2009 at 11:18 AM EDT.

Chrysler Financial will cut about 350 jobs and close a customer service center near Kansas City due to tight credit and weak car sales, the financial services firm said Tuesday, Reuters reported.

The firm, which is fully owned by Cerberus Capital Management, said the job cuts would reduce its workforce by about 9 percent, the news service said. Chrysler Financial said it would close a customer call center in Overland Park, Kan., at the end of August and cut jobs in other business units and at its headquarters in suburban Detroit, the report said.

As part of the U.S. government-sponsored restructuring of Chrysler Group LLC and General Motors, GMAC is taking over responsibility for providing loans to finance inventory for Chrysler dealers from Chrysler Financial. GMAC also has taken over the financing of the low-interest loans used by Chrysler to move slower-selling inventory.

The changes leave Chrysler Financial with a reduced scope of operations, Reuters said. The firm continues to offer insurance to car dealerships and alternative financing for consumers purchasing new vehicles, the story said. (Reuters/Automotive News)

This entry was posted on Wednesday, July 1st, 2009 at 11:18 AM EDT and is filed under Industry. You can follow any comments to this entry through the RSS 2.0 feed. Comments are currently closed.