Auto Service World
News   May 12, 2010   by Auto Service World

General Motors could reenter auto-lending business


Bloomberg is reporting that General Motors could make a return to the auto-lending business after a three-year absence from the business when it sold control of GMAC LLC, according to sources.

 

According to the report, General Motors is looking to buy back the GMAC business and then begin a new financing company or forge partnerships with banks and other interested lenders. The sources that spoke with Bloomberg said the move by GM to get back into the auto-lending business with its own finance arm would help GM improve its profit picture and help give GM dealers competitive leasing and load offers.

 

CEO Ed Whitacre is said to want to establish an in-house lender before taking the automaker public again. By acquiring GMAC, known today as Ally Financial Inc., would give GM an already existing leading operation. However, for GM to acquire those operations, it would have to enter into a deal with the U.S. Treasury which currently owns 56 per cent of GMAC.


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