Marchionne: No captive? No problem
Posted on Monday, November 30th, 2009 at 1:20 PM EST. (Employee News)
Chrysler Group lacks a captive finance company, and that’s just fine with CEO Sergio Marchionne, the Automotive News reported.
In fact, he says Detroit automakers in recent years drifted into trouble by relying on profits from captive finance companies, the story said. It meant they de-emphasized their primary mission: selling cars profitably, he told Automotive News in an interview last week.
Marchionne’s views defy conventional wisdom in Detroit, where automakers have long subsidized auto leases and loans at captives at the expense of automaking profits, the story said. For Marchionne, automaking must come first. To guarantee their survival, he told the paper, “car companies [are] going to be driven by their ability to make money selling cars.” (Automotive News)
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