Ally Financial announced today it has finalized the sale of most of its European and Latin American operations to General Motors Financial Company. Ally obtained roughly $2.6 billion in total proceeds, receiving approximately $2.4 billion at closing and $190 million in dividends before.
The deal between Ally and the wholly-owned subsidiary of General Motors Co. includes operations in Germany, the United Kingdom, Italy, Sweden, Switzerland, Austria, Belgium, the Netherlands, Mexico, Chile, and Colombia. The sale of Ally arms in France, Brazil, and China are in the pipeline, and are expected to be finalized in phases throughout the year.
To date, the sale of Ally’s international arms, including the Canadian transaction finalized in February, have generated nearly $6.7 billion. That accounts for more than 70% of total proceeds anticipated from the sale of the lender’s non-U.S. business.
Ally Financial offers auto financing products and services, including new- and used-vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans, and vehicle remarketing services. As of Dec. 31, 2012, it had $182.4 billion in assets.
Frank I don’t know were you are getting your information but I can tell you that it was not the auto dealers that caused this recession. I think the statement of David Regan, NADA vice president of legislative affairs makes a very good point in his support of the Brownback ammendment.
Our system will still encourage dealers to run they loan package against all the lenders they are associated with and then select the lenders that will approve the loan with the customers approval.
It offers complete openness but it still allows the dealer to earn a fair profit including the F&I Department as loang as it fits the lenders guide lines.
“Dealer-assisted financing is pro-consumer and pro-competition. Auto dealers can meet or beat the rates offered by banks and credit unions every day because dealer-assisted financing requires lenders to compete for a consumer’s business.”
“With the vote expected within a day, dealers and their employees must take the opportunity to explain to their senators that supporting the Brownback amendment will keep dealer-assisted financing affordable and a viable option for consumers,” Regan said. “While all auto loans—including buy-here/pay here loans—will remain included in the bill, the Brownback amendment protects consumers’ ability to easily find affordable auto financing at their neighborhood auto dealerships.”
Editor’s note: NADA’s legislative affairs office is urging dealers and their employees to call their members of the Senate immediately and to make the following points in support of the Brownback amendment:
(1) Small business automobile dealers are not banks or financial institutions, yet, they would be covered under S. 3217, because of the bill’s broad definition of “consumer financial product or service.”
(2) The Brownback auto dealer amendment helps preserve auto finance competition for dealership customers.
(3) All auto lenders and all loans will be fully regulated by the Bureau of Consumer Financial Protection, as well as financing provided by “Buy-Here-Pay-Here” dealers and auto title lenders.
(4) The practices targeted by opponents of the Brownback amendment are already illegal, and will remain illegal if the Brownback amendment is adopted.
Did Ally have any floorplan lending agreements / outstandings in any of these countries? If so, were they also sold to GM Financial as part of the deal?