DETROIT — GMAC announced Monday that it has ramped up its position as the preferred financing source for the Chrysler Group, its dealers and customers. Ultimately, more than 90 percent of Chrysler dealerships who applied for wholesaling lines are expected to be approved.

The company said it is now the top provider of consumer financing for Chrysler vehicles in the U.S., originating about $720 million in Chrysler retail loans in the third quarter.

In October, GMAC officials indicated that they financed 24 percent of Chrysler U.S. retail sales, up from 10 percent in June. 

On the wholesale side, as of Sept. 30, GMAC said its outstanding balance of wholesale financing of Chrysler dealers was about $3.3 billion.

"When selected as the preferred finance company for Chrysler in May, GMAC quickly provided interim wholesale financing for most of the dealers' inventory that was previously covered by Chrysler Financial.

"The process of formal underwriting for wholesale credit lines was expected to take six months," according to officials.

"GMAC currently provides wholesale financing for 67 percent of Chrysler U.S. dealership inventory and 85 percent of Chrysler inventory in Canada, and that percentage grows daily," they continued.

Overall, the company said it received 1,474 applications for post-interim wholesale financing from the dealers who had previously been covered by Chrysler Financial.

While some questions circulated about dealers who had real estate loans or capital loans with Chrysler Financial and whether they could successfully switch to GMAC, officials said most have been approved.

"The vast majority of these dealerships have been approved," company executives stated.

About 84 dealerships, or 6 percent, are in final negotiations and soon expected to close the deal.

Meanwhile, 58 dealerships, or about 4 percent, have gained conditional approval, pending their ability to meet the wholesale financing terms and conditions.

"This number includes 41 dealerships that have problematic real estate or working capital loans currently with Chrysler Financial," according to the statement.

Eighty-five dealerships, or less than 6 percent, have been declined for "failure to meet credit standards."

"The majority of these dealerships were previously on ‘finance hold' with Chrysler Financial and were notified in June, and many have been in liquidation for some time," executives indicated. "Therefore, we expect more than 90 percent of the dealerships who originally applied to receive wholesale financing."

The company also pointed out that in addition to retail and wholesale financing, GMAC is also leveraging their technology for the Chrysler dealer body, including SmartAuction.

"We expect to finalize the remaining Chrysler inventory financing agreements soon, and look forward to building GMAC's relationship with Chrysler dealers and customers," they concluded.