GM Closes In on Ally’s Non-U.S. Auto Financing Arms
Ally Financial’s auto-financing arms in Europe and Latin America are on the selling block for roughly $4 billion, and General Motors Co. is in advanced talks to purchase them from the Detroit-based lender, a source close to the deal has said. A few other financial institutions have also made bids for Ally’s non-U.S. operations, according to published reports.
Ally was formerly known as General Motors Acceptance Corp. since its founding in 1919; it was renamed Ally in 2010. The company is selling off its non-U.S. holdings to help repay its $17.2 billon government bailout.
“We continue to be focused on maximizing shareholder value and finding the best solutions for the remaining international operations,” said Ally spokeswoman Gina Proia.
As AFN.net reported last month, Ally sold its Canadian auto finance and deposit business to Royal Bank of Canada, and its Mexican insurance operations to ACE Ltd.
In an attempt to revitalize its business, Ally will focus on U.S. auto lending and banking. In May, the lender’s Residential Capital mortgage arm filed for bankruptcy; Ally hopes to sell most of its remaining mortgage operations.
