Categorized | Transportation

Dollar Thrifty Issues Update on Chrysler

Dollar Thrifty Automotive Group Inc.’s credit exposure to Chrysler LLC, has declined significantly due to payments received since the commencement of the Chrysler bankruptcy proceeding and successful asset sale. Dollar Thrifty confirmed it does not have any material exposure to General Motors. As previously announced, the Dollar Thrifty primary credit exposure to Chrysler relates to residual value guarantees on program vehicles in the company’s rental fleet, as well as on program vehicles that had previously been returned to auction. DTG ‘s exposures: – About $6.4 million in trade receivables under incentive and vehicle repurchase programs. – About $250,000 in estimated exposure for residual value guarantees on about 40 program vehicles that have been returned to auction but not yet sold. — About $23 million in estimated exposure for residual value guarantees on approximately 3,600 program vehicles currently in the company’s rental fleet. These vehicles are subject to return to auction in the third and fourth quarters of 2009.

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