Posts Tagged ‘Chrysler Financial’

Chrysler to Roll Out Compressed Natural Gas Vehicles in 2017 – Why?

May 16th, 2011

Chrysler declared last week that it will commence marketing compressed natural gas (CNG) vehicles by 2017. But why is the car manufacturer committing in yet another substitute technology when electric fomites have car companies, charge-station producers, and also the government on their side? The answer is invariably and usually money.

One of the simplest and general reasons is that compressed natural gas fomites are more inexpensive than electric cars. The fomites comprise of compressed gas storage tanks as an alternative to costly lithium-ion batteries. Honda’s Civic GX CNG fomite is priced at $25,490. This price is by far less when it is compared to most reasonably charged new batch of electric cars like Chevy Volt costing $41,000 before tax credits, or the Nissan Leaf, which has its starting price from $32,000 before credits.

The CNG fomites also are on the threshold of receiving government backing, making them even less costly. A recently-put in Natural Gas Bill in Congress has 154 patronizes, and if authorized, it will permit the government to put forward credits to encourage and develop compressed natural gas fomites, same as it does with electric fomites.

Chrysler is also perhaps attempting to circumvent its stakes lest this whole electric-vehicle thing comes down flat on its face in another10 years. And it is not only Chrysler resisting to just stay with electric cars. Other companies are furthermore gradually beginning to get into the market. Honda has programs to trade with its CNG-powered Civic in 50 states following year, and GM began selling natural-gas fomites to fleet purchasers last year. And for Chrysler, this is a reasonably gentle movement because its parent company Fiat is already selling natural gas-powered vehicles in Europe and South America.

Thus we can say that not all car manufacturers have hugged electric cars as the ultimate eventual future, yet. They just assume they are part of a branched out portfolio. But each crumb of R&D capital that goes to make a compressed natural gas car is just an exhausted dollar that is not altering your electric car’s series or battery life.

Possible clients should be cautious of yet another petroleum option. The quantity of compressed natural gas refueling stations will have to level up radically if the technology is to get off the ground. And with a lot of companies cooperating on enlarging the EV substructure, that may take a moment, or just not at all occur. In California, for instance, there are 448 EV charging stations and only 217 CNG stations according to the DOE.

Yet another disadvantage of compressed natural gas is that it is not a renewable source. Electric vehicles can often charge up with electricity got from coal or even natural gas, but they at any rate have the alternative of refueling with renewable.

Bob Lee, who is Chrysler’s vice president for engine and electrified propulsion systems, said in an interview in Detroit that “The technology is very actively being worked on.”

Fiat, which possesses 30% of Chrysler and contrives to step-up the holding to 51%, has engines utilizing compressed natural gas in Europe. Chrysler administrators have researched getting that Fiat technology to the U.S.

Lee at the SAE 2011 World Congress, an automotive engineering convention in Detroit further added that “It’s a good way for some diversity in the market in terms of fuel use.”

Fred Diaz, head of the truck unit, said in February that “Chrysler is looking at the possibility of adding compressed natural gas-powered engines to its Ram brand. I’m eager and very interested to see what we can do with CNG in our truck applications.”

Chrysler Financial: They Are Restructuring, Is It Good or Bad?

September 1st, 2009

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.