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Wells Fargo Expands GM Relationship, Eyes Other Automakers

August 16, 2012

SAN FRANCISCO — The agreement between General Motors and Wells Fargo for consumer and commercial financing has expanded, Bloomberg reported Tuesday. The bank, which announced earlier this year that it signed on with GM to provide financing to Chevrolet, Buick, GMC and Cadillac dealers and customers in the western region, is now working with GM dealers in the south central region.

Tom Wolfe, who heads up the new Wells Fargo Consumer Credit Solutions, told Bloomberg that the bank would like to expand its relationship with GM even further. He added that the current program offered to the automaker’s dealers can be offered to other OEMs as well.

The two companies rolled out their partnership in early March. The agreement allowed Wells Fargo to offer GM dealers a complete suite of financing products, including subvented and nonsubvented retail financing. At the time, GM distributed captive offerings through GM Financial and Ally, as well as a leasing program through U.S. Bank.

The expansion of Wells’ reach into the south central region comes after GM made a bid to reacquire parts of Ally Financial Services. The automaker, through GM Financial, is interested in its former captive’s international operations, and joined a number of other financial institutions bidding for the business unit.

To read Bloomberg’s full report, click here.

Announced on March 2, the agreement between Wells Fargo and GM waallowed the bank to offer GM dealers a complete suite of products alongside the core offering retail subventionThe agreement, officially announced on March 2, called for Wells Fargo to bid on subvented loans made.

Wells Fargo & Co. is enticing General Motors Co. customers with an expanded auto-loan plan, challenging the operations of Ally Financial during its changeover, Bloomberg reported Tuesday.

According to Bloomberg, GM already selected Wells Fargo to provide financing to Chevrolet, Buick, GMC and Cadillac dealers in the U.S. west marketing region, as well as the south central region. And according to Tom Wolfe, executive vice president of consumer credit solutions of Wells Fargo, the company intends to expand further.

“We like the relationship, so we’d certainly like to think about expanding it,” Wolfe said in an Aug. 10 Bloomberg interview. It’s a program “we can offer to other manufacturers,” he said.

According to an Aug. 13 filing with the Securities and Exchange Commission (SEC), GM bid to acquire the international arm of Ally Financial. Read more about the filing here.

 

Comments

  1. 1. Denis Flaherty [ August 16, 2012 @ 12:59PM ]

    HMMPHH--Wells Fargo helping dealers?? ha! When it's convenient for them. Worst banking relationship I've ever had.

    "WE'LL HELP YA AS LONG AS YOU CAN PROVE YOU DON'T NEED IT"!

 

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