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Zero Percent Financing
Another day, another bailout. This time Chrysler has taken $1.5 billion of tax payers money to stay afloat. They say it will allow them to offer customer zero-percent financing on several models (the slow sellers, eh?) and help bad credit customers to get a car.
The Treasury said the new aid is in addition to the $17.4 billion in loans earmarked for Chrysler and General Motors Corp. last month in an effort to buy time for the two companies to reorganize and ultimately return the domestic auto industry to profitability.
"This funding will better position us to withstand the current economic challenges until funding becomes available through more traditional commercial sources," Thomas F. Gilman, Chrysler Financial's vice chairman and chief executive, said in a statement.
Chrysler Vice Chairman and President Jim Press said the loan will allow Chrysler Financial to provide more customers with affordable financing, including those with credit scores around 620.
"We have customers who want to buy our vehicles, dealers who want to order vehicles and employees who want to build cars," Press said in a statement. "Now with enhanced financing available in the system we can help our customers get the credit they deserve and help drive America forward."
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