News & Resources

Ally turns up the heat on GM Financial

Feb 25, 2011 Brian Bradley

A new dynamic in the rivalry between Ally Financial, the former subsidiary of General Motors, and GM's current financial house, GM Financial, came to light this week. Ally has reportedly made moves to strengthen its ties with General Motors dealers ahead of the company's initial public offering. Bloomberg reports that Ally is looking to strengthen its ties with GM dealers to enhance its inventory prior to the company's IPO. This month, Ally chief executive officer Michael Carpenter held meetings with prominent GM dealerships during the National Automobile Dealers Association event in San Francisco. However, the meetings were reportedly held without GM brass, leading analysts to believe Ally is positioning itself in the market. Maryann Keller, an auto industry analyst, told Bloomberg that Carpenter's dealings were done to assuage dealers' fears that Ally would drop their business. The news source reports Ally's motivation rests in the $23 billion in contracts it held as of Q4 2010, totaling more than 803,000 vehicles. GM Financial has attempted to push back in recent months, including the roll-out of a new leasing program in Ohio and the Northeast that would distribute cash loans to consumers. If successful, the plan could undercut Ally's footing in the region.