AUBURN HILLS -- Chrysler LLC said Sunday its financial unit had renewed lines of credit totaling $24 billion that will fund the automaker's dealers and its financial services business.

Chrysler Financial initially sought $30 billion but reduced the amount "due to conditions in the credit markets and changes in the company's retail strategy," the company said in a news release.

"The liquidity provided by these facilities will enable us to support our dealers and their retail customers," said Tom Gilman, executive vice chairman of Chrysler Financial.

Last month, Chrysler said its financial arm was getting out of the auto leasing business because economic conditions have made leasing more expensive than buying, for both consumers and the company.

The move came amid a sharp drop in values for leased trucks and sport utility vehicles that are coming back to automakers as leases end. Executives said the automaker wants to allocate its limited resources to retail incentives and financing, which make up 80 percent of the market, instead of leasing, which is 20 percent of the U.S. market.

On Friday, Chrysler said it was ahead of its financial goals for the first half of this year, despite slumping U.S. vehicle demand and a tough economy.

The automaker also said it posted earnings before interest, taxes, depreciation and amortization of about $1.1 billion for the first half of the year, also well ahead of its plan. Chrysler did not provide a net income figure or break down its results, but Daimler AG, which owns 19.9 percent of Chrysler, indicated last week that Chrysler lost an estimated $510 million in the first quarter.

Chrysler, which has been a private company since it was bought last year by Cerberus Capital Management LP, isn't required to release financial data.

via detnews