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Chrysler, trade group want $700B federal bailout to include bad loans

September 24, 2008

Chrysler LLC and a trade group representing auto-finance companies have talked with Washington officials about a plan to cover bad auto loans as part of the federal government's proposed $700 billion bailout of the banking industry.

"I know there have been discussions about what is the border between banks and finance companies," Chrysler LLC President Jim Press said Tuesday when asked whether finance companies would be eligible for aid.

Chrysler, its credit unit, Chrysler Financial, and auto and home lender GMAC Financial Services could benefit if the bailout covered bad auto loans. All are majority owned by private equity firm Cerberus Capital Management LP

He said there is about $200 billion in outstanding auto loans in the United States. Of that, about 10 percent are classified as distressed, meaning it would cost about $20 billion to bail out auto finance companies.

Complete Article Link:Auto financing aid sought
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