GM Financial to expand into markets and compete against Ally Financial

Article by Christian A., on February 7, 2011

Plans are in place for GM Financial (General Motors Co.'s auto lending branch) to expand into markets that may put it in direct competition with Ally Financial Inc. GM owned Ally, formerly GMAC Financial Services, until 2006.

GM and its affiliates still have a 9.9% stake in GM Financial. A recent report from The Wall Street Journal reveals that GM Financial will soon start lending to customers in Canada, one of Ally's markets, and possibly auto dealers.

The report further stated that Ally handles about 80% of lending to GM dealers. GM Treasurer Dan Ammann told the Journal that this move is an attempt to increase sales by making credit more widely available to car buyers.

GM Financial, formerly AmeriCredit, plans to get into vehicle leasing as well as expanding loan volumes to lower-credit car buyers due to the potential profits.

Ally is preparing for an initial public offering this year. A Bloomberg report revealed that the financing firm has chosen underwriters Citigroup Inc., Goldman Sachs Group, J.P. Morgan Chase & Co. and Morgan Stanley to lead the offering. It is still uncertain what the working relationship of GM and Ally will be in the wake of the offering. [via autonews - sub. required]

Topics: ally financial

If you liked the article, share on:

Comments

Recommended

BMW just keeps on getting bigger and bigger, in terms of their lineup I mean. Just after unveiling the 8 Series Concept, they are now teasing us with an M8...
by - May 29, 2017
Ford's prized SUV, the Ford Expedition, is considered as a popular pick in the full-sized SUV category. Now, the American automaker has implemented a timely redesign to its most valued...
by - May 29, 2017
You probably heard about Ford’s CEO Mark Fields’ departure from the company. Fields has spent almost three years with the company, and now, he is going to be replaced by...
by - May 28, 2017
A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries