Chrysler is one company that many people depended on for their livelihoods.  It was a good company that really cared about everyone and everything that it touched.  Now, there is a restructuring program in place that is about to cut about 350 jobs near Kansas City.  It seems that in this generation, there is no light at the end of the tunnel, no matter which way you look at it and while Chrysler Financial is not to blame for the jobs being cut, you almost have to wonder how they got into this mess in the first place.

One of the main reasons why Chrysler Financial is cutting these jobs is due to tight credit and very weak car sales.  The firm which they are closing down is owned fully by Cerberus Capital Management and Cerberus admitted to cutting their workforce down about 9%.

Another place in Overland Park, KS that will be closed at the end of August is a customer care call center, which in turn will cut more and more jobs and put more people on unemployment.

Kansas will not be the only state that is affected by this new restructure as they are cutting jobs at their Corporate Headquarters in Farmington Hills, Michigan as well.  While a total of 350 jobs are expected to be loss, Chrysler is looking at consolidating their credit as well so the impact of this huge amount of job loss will eventually resettle itself.

All of these changes and cuttings of jobs is going to be happening at the end of August and while we still do have a little while before it happens, just the thought of it truly is stomach-churning.
The CEO of Chrysler Financial is empathizing, that does not change the fact that these changes in the structure of his company are going to affect thousands of people.  This is what he had to say:”While these were difficult decisions to make, they are necessary in light of our declining portfolio,” said Tom Gilman, Chairman and CEO — Chrysler Financial. “We have made every effort to limit the number of job losses and to ensure the affected employees are treated fairly.”
Another thing that is happening in the why of this restructure program is GMAC will take over all of the responsibility in providing any loans to finance any inventory that Chrysler dealers have from Chrysler financial.  GMAC also will be taking over any of the low-interest loans that were being utilized by Chrysler to get rid of some of the slower-moving and selling inventory.

What this means for the future of Chrysler Financial is that they will be working with a reduced scope of operation.  The firm of course will continue to offer up insurance to car dealerships and will find all sorts of alternative financing for customers looking to buy a new car, but they will be limited on their flexibility with loans.

Finding a loan for a car nowadays is extremely difficult, but Chrysler Financial is going to continue to offer up some flexibility on their loans and thy are going to collect on their on-going loan portfolio which equals up to be about forty-five billion dollars.

While it can be difficult to hold hope out for jobs to become available in Chrysler Financial, with the restructuring coming about, you will see results … eventually.  The stimulus package that Obama has put out and lowered the taxes down should be helping stabilize this particular company, however, nothing can be fixed overnight and this is something that will take quite a while.