TD Bank Buys Chrysler Financial, Chrysler Says no "connection"
Chrysler Financial and Chrysler Groups are two different entities. Chrysler wants to make sure the general public and the investor community do not confuse the two entities together.
"Reminder: There's no management or other ownership connection between #Chrysler Group & Chrysler Financial. Totally separate entities. ^MD," tweeted Chrysler Group this morning after the news broke about Chrysler Financial's acquisition by TD Bank.
Yet, the news will still impact the U.S. car lending market and the auto industry in general. The cache purchase, worth approximately $6.3 billion, will position the new car loans business entity to be one of the top 5 bank-owned auto lender in North America.
"This transaction represents a unique opportunity to purchase a great organic growth platform at an attractive price," said Ed Clark, Group President and CEO, TD. "Chrysler Financial is a well-run business with the capacity for significantly higher returns over the next several years. This acquisition will allow us to leverage our lending expertise and financial strength to expand our presence in a large North American market with tremendous potential upside."
Chrysler Financial's CEO Tom Gilman hopes the transaction will benefit both the consumers and "our dealer network," he is quoted in TD Bank's press release about the acquisition. Thus, while Chrysler Group tweets that they are separate from Chrysler Financial, the "our dealership network" is set to gain from this transaction as well.