The Detriot 3 Credit Crunch/Lease-Purchase Donkey Punch

Автор: DarrenFerris on понедельник, 7 сентября 2009 г. / Ярлыки: , , , ,

Chrysler, ostracized earlier last week for its unorthodox decision to end its leasing program, has apparently started a maelstrom of similiar acitivty. Completing The Detroit 3 panic trifecta, both Ford and GM-controlled GMAC are planning to throw in the credit towel – sort of. Not quite willing to make the huge commitment made by Chrysler to completely eliminate leasing programs, both Ford and GMAC have announced plans to significantly distance themselves from the leasing industry.

GMAC, a financing company who owns controlling stock in both Chrysler and GM, has already ordered the end of its subsidized leasing program in Canada [effective Friday]. Although spokespeople for GMAC won’t disclose whether this initiative is U.S.-bound, GM dealers in the U.S. admit they have already been notified of the pending policy change.

Ford, adding to its growing list of unprecedented inter-company changes, has also made the decision to alter its leasing policy. According to Ford Motor Credit, in order to protect themselves from further financial loss, leasing prices on Ford vehicles will go up – way up. The theory behind Ford’s defensive action might prove to be the smartest one made by the Detroit 3. Said Ford retailer Group 1 Automotive Inc. CEO Earl Hesterberg, “They’re going to do some things to reduce their percentage of leasing, but I think Ford has understood more than anyone through thick and thin that there’s a leasing market there for certain types of vehicles.”

Also introducing plans to end auto leasing-programs are two auto-financing titans, Wells Fargo and Chase Bank. Cue total banking crisis in 5, 4…

[Source: Autmotive News]



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