Report: GM Eyes Chase, Wells Fargo for Financing

JPMorgan Chase & Co. and Wells Fargo & Co. are on the short list of potential financing partners for General Motors Co., according to a Reuters report.

News surfaced last month that GM was looking to resurrect a captive financing arm. Its choices: buy back the auto finance portion of Ally Financial, start its own financing venture, or partner with a bank.

Currently, Ally Financial (formerly GMAC) handles wholesale and retail financing for GM — and for rival Chrysler.

Among the two banks said to be in the running for the GM partnership, Chase already provides financing for Mazda, Subaru, and most recently, Hertz Rent2Buy. It’s got a $40 billion loan portfolio. Wells Fargo Dealer Services, meanwhile, has a $30 billion portfolio.

The news of GM’s search for a finance provider comes amid talk of an initial public offering filing, which could come as early as next week. GM may raise as much as $20 billion in an IPO, reducing the federal government’s share to less than 50%, from 61%. Currently, the Treasury Department owns 304 million shares of GM.