Doing business with Chrysler proved to be a boom for Santander Consumer USA’s Chrysler Capital during Q1 2014, while former lending partner Ally Financial experienced a painful bust on its Pentastar originations.
Automotive News says Ally’s volume was at zero for incentivized new-vehicle loans with Chrysler, down from $231 million a year earlier. Standard-rate loans fell 32 percent to $708 million, and leases dove 67 percent to $257 million in relation to Q1 2013, as well.
Meanwhile, Santander’s Chrysler Capital raked in $3.5 billion loans and $1.2 billion in leases as part of an overall $6.9 billion in consumer lending for the outgoing quarter, having made only $2.8 billion in total originations in the previous year.
Santander launched the new lending division after Ally’s agreement with Chrysler Group ended last year after a four-year run, a relationship the latter may take a while to get over; Ally filed a lawsuit last September against Santander Consumer USA, citing copyright infringement and misappropriation of trade secrets in the launch of Chrysler Capital. Santander proclaimed in its SEC filing that it will fight the suit.