By The Associated Press
Thursday, October 22, 2009
The U.S. Treasury Department says Chrysler Financial will go out of business by the end of 2011, costing the battered Detroit area thousands more jobs.
The automaker's former financial arm is in the process of shifting much of its loan business to GMAC under orders from the government. GMAC is becoming the preferred lender for both General Motors Co. and Chrysler Group LLC.
The Treasury Department says in a letter to Chrysler Financial that the lender is liquidating its business and repaying lenders and investors.
Chrysler Financial last summer employed more than 3,900 people, many at its headquarters in Farmington Hills, Mich.
New Chrysler loans are going to GMAC, but Chrysler Financial continues to service loans that it made on Chrysler vehicles.