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 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 9 percent.
Effective June 30, there will be workforce reductions in each of the company's eight business centers and at the corporate headquarters in Farmington Hills, Mich. Through this restructuring, all U.S. retail credit acquisition activities will be consolidated into the Great Lakes Business Center in Auburn Hills, Mich. In addition, the company is also announcing the closure of its Kansas City Customer Contact Center in Overland Park, Kan., effective Aug. 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.