FARMINGTON HILLS, Mich. — As a result of Chrysler filing for Chapter 11, Chrysler Financial announced this week that it is required to temporarily suspend dealer wholesale financing in the U.S. and Canada, effective immediately.

This will continue as financial company works to implement new procedures with its lenders.

More specifically, officials said, "In response to Chrysler LLC's April 30, 2009, decision to file for protection under Chapter 11 of the U.S. Bankruptcy Act, Chrysler Financial today emphasized that it continues in business as an independent and separate legal entity from the automobile manufacturer, and remains focused on running its business operations."

Chrysler Financial indicated that it will continue to provide standard rate financing for retail consumers and to service its existing portfolio.

Also, the company reported that it will suspend participation in Chrysler LLC's subvented APR programs while assessing the situation.

"In support of the decision made by President Obama and the Automotive Taskforce to move forward with the Chrysler Financial and GMAC transition, the company is committed to working with our lenders, employees, dealers and customers to manage through the results of this decision," stated Tom Gilman, chairman and chief executive officer of Chrysler Financial.

Chrysler Financial customers should expect no disruption to the servicing of their account as a result of these announcements.

As part of the restructuring efforts, Chrysler also announced late last week that it has reached a deal that allows GMAC to become the preferred lender for its dealers.

"GMAC is pleased to be part of the solution to restructure and stabilize the U.S. auto industry," stated GMAC CEO Alvaro de Molina. "Providing financing options to dealers and consumers is critical as we work through one of the most challenging periods in the global auto sector."

Chrysler announced today that the U.S. Bankruptcy Court yesterday gave interim approval to Chrysler for $4.1 billion of Debtor-In-Possession financing, funded by the U.S. Treasury and Export Development Canada, and the use of $400 million of cash collateral, enabling the company to meet its working capital and general business needs going forward.

Approval of Chrysler's DIP financing provides the company with resources to continue "normal course" business operations pending approval of the sale transaction with Fiat.