TD Auto Finance

TD Auto Finance is the automotive financial-services business associated with Toronto-Dominion Bank's United States operations. It provides financing connected with vehicle purchases, principally through automobile dealers and direct or indirect retail consumer lending. Its principal offerings include dealer finance arrangements and consumer auto loans, with leasing included among the types of automotive finance historically associated with the business. The operation originated in 1964 as Chrysler Credit Corporation, a finance company established to support sales of Chrysler vehicles and the Chrysler group of brands. Over time, its vehicle-finance activities covered Chrysler, Jeep, and Dodge products. Before the change in ownership, the business had developed into a sizable international automotive-finance operation. In the late 2000s it employed approximately 3,600 people and managed contracts with an aggregate value of about US$75 billion. Its historical geographic footprint included the United States, Canada, Mexico, Puerto Rico, and Venezuela, although the TD Auto Finance business described in current reference material is focused on the United States. The company was heavily affected by the financial crisis and the contraction in automotive credit markets. In January 2009, Chrysler Financial received US$1.5 billion through the United States Troubled Asset Relief Program. The company said the support was used to finance approximately 85,000 auto loans for Chrysler vehicles. It repaid the TARP borrowing in July 2009 through an asset-backed securitization arranged in connection with the Term Asset-Backed Securities Loan Facility program. The episode reflects the importance of captive and affiliated auto-finance companies to vehicle sales during the crisis, while also marking a significant transition point before the business changed owners. In December 2010, Toronto-Dominion Bank announced an agreement to acquire Chrysler Financial from Cerberus Capital Management for US$6.3 billion. The transaction closed in 2011, and the business was renamed TD Auto Finance in June of that year. Under TD ownership, the operation became part of TD Bank Group's broader United States platform rather than remaining a finance arm tied to a single automobile manufacturer. TD Auto Finance's role is therefore different from that of an automaker-owned captive finance company. It supports dealer and retail vehicle financing without being identified in the available reference material as the finance subsidiary of one current vehicle manufacturer. Its business connects dealers, consumers, and the bank through loans and related automotive-finance services. The available source identifies Southfield, Michigan, as its headquarters and describes the company as active in the United States. Detailed current information about product-level branding, leadership, financial performance, and a standalone public listing is not established in the supplied material.

TD Auto Finance traces its origins to Chrysler Credit Corporation, established in 1964 to provide financial support for sales of Chrysler vehicles. The business functioned as a captive-style automotive finance operation, supporting Chrysler and, as the company's brand portfolio developed, Jeep and Dodge vehicles. Its services were designed to help dealers and customers complete vehicle transactions through lending and related financial products. The operation expanded beyond the United States. Historical regional businesses included Chrysler Financial Canada, Chrysler Financial de Venezuela, and activities in Mexico and Puerto Rico. By 2007, the company had approximately 3,600 employees worldwide and managed contracts valued at about US$75 billion, indicating a substantial position in the global automotive-finance market before the financial crisis. The 2008–2009 financial crisis created severe pressure for vehicle manufacturers and their affiliated finance companies. In January 2009, Chrysler Financial received US$1.5 billion from the United States Troubled Asset Relief Program. According to the company, the funds supported around 85,000 auto loans for Chrysler vehicles. Chrysler Financial repaid the borrowing in July 2009 through an asset-backed securitization arranged under the Term Asset-Backed Securities Loan Facility program. A major ownership transition followed. In December 2010, Toronto-Dominion Bank announced that it would acquire Chrysler Financial from Cerberus Capital Management for US$6.3 billion. The acquisition closed in 2011. In June of that year, the business adopted the TD Auto Finance name, ending its direct identity as Chrysler's finance company and placing it within TD Bank Group's United States operations. Under the TD brand, the company continued to provide automotive finance to dealers and retail consumers. Its business includes dealer finance plans and consumer vehicle loans, with leasing and related automotive-finance services also associated with its product range. The change in ownership shifted the strategic context of the operation: instead of being primarily aligned with one automobile manufacturer, it became part of a diversified banking group's United States platform. The supplied reference material identifies Southfield, Michigan, as the headquarters and describes the current business as focused on United States dealer and consumer auto finance. It does not establish a current executive roster, standalone listing, detailed current financial results, or a separate official website, so those fields remain unspecified.

• 2011

  Business is renamed TD Auto Finance

  [1]TD Auto Financeen.wikipedia.org

  After the acquisition closes, the former Chrysler Financial operation adopts the TD Auto Finance name in June.

• 2010

  TD agrees to acquire Chrysler Financial

  [1]TD Auto Financeen.wikipedia.org

  Toronto-Dominion Bank announces a US$6.3 billion agreement to acquire Chrysler Financial from Cerberus Capital Management.

• 2009

  Receives TARP assistance

  [1]TD Auto Financeen.wikipedia.org

  Chrysler Financial receives US$1.5 billion in TARP support during the financial crisis.

• 2009

  Repays TARP loan

  [1]TD Auto Financeen.wikipedia.org

  The company repays its TARP borrowing through an asset-backed securitization arranged under the TALF program.

• 2007

  Chrysler Financial reaches substantial operating scale

  [1]TD Auto Financeen.wikipedia.org

  The business is described as having approximately 3,600 employees worldwide and managing contracts valued at about US$75 billion.

• 1964

  Chrysler Credit Corporation is established

  [1]TD Auto Financeen.wikipedia.org

  The predecessor business is founded to provide financial products and services supporting sales of Chrysler vehicles.

A bank-owned automotive finance provider serving automobile dealers and retail vehicle buyers, with roots in Chrysler's captive-finance operation and a current role within TD Bank Group's United States business.

• Dealer finance

  Dealer finance programs

  Financing arrangements for automobile dealers that support vehicle inventory and retail sales activity. These services connect dealers with the funding needed to hold or sell vehicles and form one of the core channels through which TD Auto Finance participates in the automotive market.

• Consumer lending

  Retail consumer auto loans

  Loans used by consumers to finance vehicle purchases. Historically, the predecessor Chrysler Financial stated that government support helped finance Chrysler-vehicle loans; under the TD Auto Finance name, consumer auto lending remains a central part of the business described in the reference material.

• Vehicle finance

  Automotive leasing and related finance

  Leasing and associated automotive-finance services are included among the types of products linked with the business. The supplied material does not provide detailed current terms, vehicle eligibility rules, or separate product names.

• 2010

  Acquisition by Toronto-Dominion BankM&A

  Background

  Chrysler Financial was owned by Cerberus Capital Management after the period in which it operated as Chrysler's finance business.

  Action taken

  Toronto-Dominion Bank agreed to acquire Chrysler Financial for US$6.3 billion; the transaction closed in 2011.

  Aftermath

  The business was integrated into TD Bank Group's United States operations and renamed TD Auto Finance in June 2011.

  Acquisition price. US$6.3 billion announced transaction value (December 2010 announcement; closing in 2011)

  Source

• 2009

  Use of TARP support during the financial crisisOther

  Background

  Chrysler Financial faced the severe disruption affecting automotive credit markets during the financial crisis and received US$1.5 billion through the Troubled Asset Relief Program.

  Action taken

  The company used the capital to support approximately 85,000 auto loans for Chrysler vehicles, according to the supplied reference.

  Aftermath

  The borrowing was repaid in July 2009 through an asset-backed securitization arranged under the Term Asset-Backed Securities Loan Facility program.

  TARP assistance. US$1.5 billion received (January 2009)

  Source

1. 1TD Auto Financeen.wikipedia.org