Chrysler to form firm to make auto loans


AUBURN HILLS, Mich. — Chrysler Group LLC, the automaker controlled by Fiat SpA, agreed to make a U.S. unit of Banco Santander SA its preferred provider for auto loans, replacing Ally Financial Inc.

Chrysler and Santander Consumer USA Inc. will form Chrysler Capital to provide customers with financing to buy and lease vehicles, the company said Wednesday. Chrysler Capital will begin operating May 1. It also will provide dealers with wholesale loans to allow them to buy vehicles from the manufacturer.

Chrysler said in April, 2012, that it would let an agreement with Ally expire this April.