Auto Rental News
MenuMENU
SearchSEARCH

Hecker Owes Chrysler Financial $550 Million, According to Lawsuit

The suit sheds some light on why Hecker was forced to close six of his 16 dealerships and sell three others.

by Staff
February 5, 2009
2 min to read


When Chrysler Financial Services pulled the plug on Minnesota dealer Denny Hecker last fall, a Jan. 23 Chrysler Financial lawsuit against Hecker has shed some light on why Hecker was forced to close six of his 16 dealerships and sell three others. The suit alleges that Hecker owes Chrysler Financial $550 million, according to Automotive News.

The lawsuit could put Hecker out of business. According to the suit, Chrysler Financial lent more than $50 million to Hecker personally. The remainder reflects loans made to companies that Hecker owns or controls, according to the suit.

Ad Loading...

The action follows a lawsuit Hecker brought against Chrysler Financial on Nov. 13. In that suit, Hecker alleges the captive canceled his credit lines without warning.

For 20 years, Chrysler Financial provided most of the inventory financing for Hecker's dealerships, including several non-Chrysler brands. Chrysler also has provided fleet financing for Hecker's leasing business and the financing and most of the cars for his rental business, Advantage Rent A Car. Chrysler Financial says its loans went to more than just Hecker's automotive companies. The captive also names real estate and investment firms and other companies Hecker owns or controls.

But in October, Chrysler halted dealership floorplanning and in November cut off credit for the leasing and rental-car operations. After closing or selling nine dealerships in November, Hecker filed for Chapter 11 bankruptcy protection for Advantage in December.

Chrysler Financial says in the suit it is “seizing, foreclosing against and selling” the collateral that secures the debts. That includes almost every business that Hecker owns. Hecker still owns and operates seven dealerships: three Hyundai stores, two Toyota, one Chevrolet and one Cadillac-Pontiac-GMC.

Last month, Ford Motor Co. sued Hecker for $3.1 million, alleging that his now-closed Ford-Lincoln-Mercury store in Stillwater, Minn., owes Ford for the sale of vehicles and parts.

Ad Loading...

In his lawsuit, Hecker maintains that he had good relations with Chrysler Financial until Cerberus Capital Management LP bought Chrysler in August 2007. He says the relationship was so tight that, at Chrysler's request, Hecker bought Advantage Rent A Car in February 2006 to help Chrysler avoid a possible loss of $70 million or more if Advantage went bankrupt.

More Rental Operations

Two execs hold up a sign with Southwest and CarTrawler logos

Southwest Airlines Selects CarTrawler For Its Car Rental Booking Platform

The platform is designed to allow customers to compare and book rental vehicles more easily during the travel booking process.

Read More →
Speaker John Healy on stage with a podium, screen, and red curtains in the background.
Rental Operationsby Martin RomjueMay 27, 2026

Cross-Pressures, Evolving Trends Drive 2026 Rental Car Industry

A combination of cautious economic behavior, shifts in the rental vehicle market, and technological influences are shaping car rental operator decisions.

Read More →
Award winner on stage with presenters in front of yellow curtain.
Rental Operationsby Martin RomjueMay 27, 2026

Government Affairs Executive Wins Leading Rental Car Industry Award

Robert Muhs started in the car rental industry with Avis Budget Group two years before the first International Car Rental Show.

Read More →
Ad Loading...
The rental car team at the Green Motion franchise office near the Maputo International Airport in Mozambique.

Green Motion Expands Its African Presence with Mozambique Launch

This new rental car outlet reflects the growing demand for reliable transportation and the emphasis on sustainable travel across the continent.

Read More →
Photos of CEOs Colm Brady and Francois Kruger on a blue background and above a headline.
Telematicsby News/Media ReleaseMay 22, 2026

RentalMatics, GeoInt Partner On Rental Car Speed Tracking Tech

Rental operators can now detect and act on speeding while vehicles are still on rent, thereby reducing fines, admin workload, vehicle wear, and safety risks.

Read More →
NextPass 407 ETR

NextPass Expands Toll Payment Service to Highway In Toronto

Fleets and consumer can use a transponder-less option when traveling between Canada and the U.S.

Read More →
Ad Loading...
A black Jeep is displayed at the Zubie-Bosch-TSD exhibit during the International Car Rental Show.

Zubie, PurCo Integrate Rental Damage Detection With Telematics

The combination brings actionable vehicle insights into PurCo’s PurInspect platform, improving damage detection and operational efficiency for rental fleets.

Read More →
50 states map showing LOR rates for each state with different shades of light to dark green

U.S. Length Of Rental (LOR) Declines Slightly in Q1 2026

LOR related to insurance claims overall continues to trend downward, but ongoing market and economic conditions could affect future results while the industry deals with staffing and productivity challenges.

Read More →
Illustration of a driverless futuristic front seat/dashboard view of other cars on a freeway with city skyline on horizon.

Hertz, Uber Deepen Roles In Self-Driving And Driver-Led Fleet Services

The business arrangement connects demand with scalable fleet management services and supports a range of mobility uses.

Read More →
Ad Loading...
A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

Why Car Rental Can No Longer Run On Workarounds

The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.

Read More →
Ad Loading...