FARMINGTON HILLS, Mich., June 30 /PRNewswire/ -- In light of declining vehicle sales, tight capital markets and the decision to shift Chrysler Group LLC subvented retail business to GMAC, Chrysler Financial announced today it will restructure its business operations to align operating expenses with current revenue expectations. The impact of the realignments will have the effect of reducing the Company's total workforce by about nine percent.
Effective today, there will be workforce reductions in each of the Company's eight Business Centers and at the Corporate Headquarters in Farmington Hills, Michigan. Through this restructuring, all U.S. retail credit acquisition activities will be consolidated into the Great Lakes Business Center in Auburn Hills, Michigan. In addition, the Company is also announcing the closure of its Kansas City Customer Contact Center in Overland Park, Kansas, effective August 31, 2009.
"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."
As a standalone financial services organization, the Company continues to offer dealership insurance and consumer retail financing products, and to service and collect on its on-going loan portfolio of about $45 billion. Chrysler Financial will continue to evaluate its business operations to ensure operating expense targets are in proper alignment with revenue opportunities.
About Chrysler Financial
Chrysler Financial offers automotive financial products and services to both dealers and consumers of Chrysler, Jeep(R) and Dodge vehicles in the U.S., Canada, Mexico and Venezuela. In addition, it offers vehicle retail financing to more than 3,000 Chrysler, Jeep and Dodge dealers. Currently, nearly two million drivers in the United States enjoy the benefits of financing with Chrysler Financial. Chrysler Financial has a total workforce of more than 3,900 and supports a global portfolio of nearly $45 billion. For more information, visit corp.chryslerfinancial.com.