Chrysler Financial (the lending division of Chrysler) is instructing dealers to stop offering auto leases, according to sources at Reuters.
Decreasing resale values of trucks and SUVs have caused Chrysler to take huge losses once the leases of these once-popular vehicles are up. These are losses Chrysler really can't afford to be taking as American auto sales continue to slump to their lowest point in more than a decade.
Chrysler's not the only automaker seeing huge leasing-related losses, as Ford Motor Company also reported a $2.1 billion loss in the second quarter of this year due to the same collapse of truck and SUV resale values. Whether other automakers will follow Chrysler's lead of wholesale discontinuation of leasing remains to be seen.