Here’s another amusing (well, probably not to the dealers) side of the Chrysler saga. From the (Toronto) Globe and Mail:
Chrysler Group LLC will start cranking out vehicles at seven of its North American assembly plants on June 29, but some Canadian dealers say they will be unable to restock their dealerships with new vehicles because they can’t get the financing they need.
Inventories have fallen to minimal levels […but many …] can’t order new cars and trucks because they are still waiting for financing approval from GMAC LLC
This is another example of cascade failure I spoke about earlier. Seemingly unrelated things combine to topple systems that should continue to work. If it were easy to get credit another way, these dealerships would not be having a problem. They might pay a little more for credit from someone else, but at the moment, all other sources are choked off, and this one is slow.
This is another bottleneck on the road to a recovery for stampers.