General Motors Co. has selected Wells Fargo & Co. to offer funds to the dealers of Buick, Chevrolet, Cadillac and GMC as well as retail customers in the western U.S. This region includes California, which is the biggest new automobile market in the country. The state is also a key priority in the attempts of GM to rebuild market share and sales.
GM has disclosed that the "long-term" deal with Wells Fargo will go together with the offerings through GM Financial, a leasing program with U.S. Bancorp and its relationship with Ally Financial Corp. Aside from retail financial backing, Wells Fargo will also provide GM dealers non-subvented retail loans, treasury services and insurance as well as financing solutions like wholesale floor plan, the companies disclosed in a joint statement.
GM CFO Dan Ammann commented that the partnership with Wells Fargo signifies "another step forward" in their strategy to make sure that their customers and dealers have consistently available, competitive and transparent financing. Auto-industry analyst Jesse Toprak at TrueCar.com commented that the financing deal could aid GM in California, where Wells Fargo has a large presence.
He revealed that Wells Fargo has an existing "millions" of customers, which would probably be tapped into. TrueCar.com is a website that monitors sales and financing with regard to the automobile industry.
Wells Fargo Consumer Credit Solutions' head Tom Wolfe commented that the partnership broadens the bank's "significant footprint in the West." He also said that it will "fuel growth" in the bank's vehicle finance business, which is an area that the bank is studying to expand. Wells Fargo is also one of the banks that attempt to expel Detroit-based Ally Financial Corp. as the preferred vehicle lender of Chrysler Group, according to three individuals familiar with the bidding.