FULDA -- With the separation of Daimler and Chrysler finally taking place, the Mercedes-Benz financial arm will stop functioning as the financial partner for German Chrysler dealers at the end of September.
As a result, Chrysler's German sales organization is now seeking an "overall solution," managing director Radek Jelinek told about 130 dealers at a meeting in Fulda.
In light of Fiat's planned acquisition of Chrysler, the importer is pinning its hopes on Fiat's financial unit. It has done business as FGA Bank Germany since beginning of the year.
Harald Schneefuss, an official with the Mercedes unit, said that Chrysler dealers will be granted an unspecified goodwill period in October.
The Mercedes financial unit's separation from Chrysler "has shocked many dealers," said Peter Jakob, a spokesman for the Chrysler dealer association. "The Mercedes-Benz financial arm has been a fair, reliable and competent partner to dealerships and has always dealt with us fairly."
Jakob said his organization is also talking to other financial institutions that aren't affiliated with an automaker as a back-up.
Jelinek considers it unlikely that the parent company's problems will drag his sales organization into insolvency.