Santander May Become Chrysler’s Preferred Lender

Chrysler Group LLC is in negotiations to make Spain's Banco Santander SA the preferred provider of loans to the company's dealers and customers, Bloomberg News reports.

The news service cites unidentified sources who say Chrysler has entered 30-day exclusive talks with the bank's American unit.

A preferred lender receives an automaker's financial support to fund low-interest auto loans and sweetened leases for buyers of its vehicles. Santander became Chrysler's partner in 2010 for making subprime loans to its car buyers.

Chrysler said earlier this year would not renew its preferred-lender agreement with Ally Financial Inc. when the pact expires in April. The carmaker disclosed in September that Santander and JPMorgan Chase & Co. were possible financing partners.