Chrysler plans to stop leasing cars

updated 4:21 p.m. ET July 25, 2008

DETROIT - Chrysler LLC has told dealers that the automaker's financial arm plans to get out of the auto leasing business before the end of the year.

A dealer who asked not to be identified says the reason is that the company has experienced losses on leased sport utility vehicles and pickup trucks because their residual values have dropped.

Chrysler spokesman Stuart Schorr declined to comment on the issue but said Chrysler executives will hold a conference call Friday afternoon.

Word of Chrysler Financial's move comes a day after Ford Motor Co.'s credit arm took a $2.1 billion charge because of the drop in the residual value of leased vehicles.

The Chrysler dealer did not want to be identified because the company had not made an official announcement.

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