GMAC was founded in 1919 and GM was credited with pioneering auto financing, a major source of dealer profits. The 2023 GMC Acadia, a midsize SUV, is available with 1.9 financing, also for a limited term. GM still owns the trademark on the use of the name GMAC, which expires in 2016. “By doing business with us, our (automotive partners) do not need to invest the billions of dollars of equity capital necessary to maintain a large balance sheet of loans.”īut some GM dealers said they would welcome a move by the automaker to bring back its own finance company. “A manufacturer cannot own a bank,” she said. Proia said because Ally is a bank-holding company it has access to lower-cost funding than a captive auto financing company would. Ally also provides financing for Chrysler. Gina Proia, a spokeswoman for Ally Financial, said the current relationship has benefits for GM. “We have no comment on such speculation,” said GM spokesman Selim Bingol. GM Chief Executive Ed Whitacre, who is pushing GM toward an IPO as soon as this year, has argued in favor of taking back the auto finance portion of GMAC and retaining the GMAC name, the sources said. retail customers in the first quarter, said the sources who did not want to be identified because the discussions are preliminary.Īnother option would have GM pair up with an outside bank in a partnership that would create a new auto financing company under its wing before it looks to sell its own shares in an initial public offering, according to the sources, who were not authorized to discuss the preliminary discussions. One option being considered would have GM take back the auto finance portion of GMAC, which provided financing for about 30 percent of GM’s U.S. Treasury also owns 61 percent of GM after providing nearly $50 billion to restructure the top U.S. Treasury after the government injected $17 billion as part of a restructuring that also saw the finance company become a commercial bank. Such a move would mark a nearly complete reversal of the process that started in late 2006 when GM sold off a controlling stake in GMAC to Cerberus Capital Management in order to raise cash for its own restructuring.ĭetroit-based GMAC, now known as Ally Financial, is 56-percent owned by the U.S. DETROIT, May 11 (Reuters) - General Motors Co is considering options that would give it a captive auto financing arm and allow its dealers to offer more competitive loans and lease deals, two people with knowledge of the plans said.
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