Chrysler to End Finance Deal with Ally

Chrysler Group LLC says it has notified Ally Financial Inc. it will not renew their operating agreement when it expires at the end of April 2013.

As Chrysler's preferred lender, Ally receives the carmaker's financial support to fund low-interest auto loans and sweetened leases for buyers of its vehicles. Ally says such "subvented" financing accounts for about 5% of its total U.S. consumer lending.

The finance company also provides inventory loans to Chrysler's dealers. Ally, the former GMAC, absorbed the business formerly handled by Chrysler Financial in June 2009.

Chrysler has said it is talking to other lenders about replacing Ally but has not yet chosen a new lending partner.