GM Financial officials said Ally shouldn’t be surprised by GM’s decision to internalize its lease program. The company ended the year with a 50% share of GM’s lease business.
During a quarterly earnings conference call last week, Ally’s former CEO opened up about General Motors’ unexpected decision to move all of its lease incentives to its captive, GM Financial.
On Jan. 2, GM Financial and GMAC UK acquired Ally’s 40% equity interest in SAIC-GMAC Automotive Finance Company Limited, a joint venture that conducts auto finance operations in China.
On the same day the U.S. Department of the Treasury sold the last of its remaining 54.9 million shares of Ally common stock, Ally Financial revealed that it has received a subpoena from the Department of Justice related to subprime auto lending.
General Motors reaffirmed its connection to GM Financial by increasing its captive’s credit line to $1 billion.
Strong words at NADA 2014 and the Vehicle Finance Conference indicate that both sides of the rate participation debate are preparing for a long, drawn-out battle.
GM Financial realized its second best year for credit metrics in 2013, which drove profitability for the captive finance company. But officials believe credit will be ‘a bit weaker’ in 2014.
Officials say they don’t expect the CFPB’s targeting of dealer participation to impact the company’s economics. They also offer updates on the company’s roll out of a prime product and its acquisition of Ally Financial’s international business units.
The South Carolina-based auto auction was named Auction of the Year by GM Financial for the fourth time.
DataScan will perform pre- and post-term lease inspections for General Motors’ captive finance company.
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