EDMONTON, April 30 /CNW/ - AutoCanada Income Fund ("AutoCanada")
(TSX:ACQ.UN) today announced that it received notification from its primary
lender, Chrysler Financial Canada ("CFC"), that CFC has temporarily suspended
its wholesale floorplan financing for all dealerships that CFC provides
wholesale floorplan financing. Twenty of the twenty-two franchised dealerships
owned or operated by the Fund have wholesale floorplan financing with CFC. In
its letter to all Chrysler, Jeep, and Dodge dealers, CFC indicated that the
suspension of advances under the wholesale flooring program would be temporary
as they work to implement new procedures and processes with their lenders.
Pat Priestner, CEO and Chairman of the Board of Directors stated that
"Chrysler Canada, which supplies eleven of our twenty-two dealerships with new
vehicles, has made arrangements with GMAC to provide floorplan financing to
qualified Chrysler, Jeep, and Dodge dealerships. We have contingency plans in
place with respect to obtaining floorplan financing for our non-Chrysler,
Jeep, and Dodge dealerships, which we are presently reviewing. These are very
challenging times in the automotive industry and we are very pleased to see
the progress that is being made by one of our main partners, Chrysler Canada,
as well as the support the industry as a whole received from both the Canadian
and U.S. governments as announced today."
AutoCanada is Canada's only publicly traded entity with interests
exclusively in the operation of franchised automobile dealerships. Through its
53% interest in AutoCanada LP, it presently owns or manages 22 franchised
automobile dealerships in six provinces and has over 1,100 employees. Through
its owned and managed dealerships, it currently sells Chrysler, Dodge,
Jeep(R), Infiniti, Nissan, Hyundai, Subaru, Volkswagen and Mitsubishi branded
vehicles. In 2008, its owned and managed dealerships sold approximately 23,700
vehicles, processed approximately 277,300 service and collision repair orders
in 284 service bays, and generated revenue of approximately $827 million.
Additional information about AutoCanada Income Fund is available at
www.sedar.com and the Fund's website at www.autocan.ca.
For further information:
For further information: Tom Orysiuk, CA, Executive Vice-President and
Chief Financial Officer, Phone: (780) 732-3139, Email: email@example.com