WOW!!! The automotive landscape is changing everyday!!!




Chrysler Financial, the finance arm of Chrysler Holding LLC, will get out of the leasing business, according to two dealers who have been informed by company representatives. An announcement on the change was expected to be made during a 3:30 p.m. conference call today.



The move comes a day after Ford Motor Co. took a $2.1 billion charge because of a drop in residual values of its leased vehicles.



And earlier today, Honda Motor Co. said it expects falling residual values of big used vehicles in the United States to shave another 25 billion yen ($231.8 million) from its operating profit in the year to March 2009, according to a Reuters report.



Earl Hesterberg, chairman of Group 1 Automotive Inc., the nation`s fourth-largest dealership group, reacted to the Chrysler news by saying:



"Their credit arm has been a competitive weakness before this action. I really don`t see how they can be competitive at all in the marketplace with this kind of action. I have no idea how they can be competitive without any leasing at all."