News & Resources

Auto financier posts fourth straight profitable quarter

Feb 01, 2011 Brian Bradley

Ally Financial, a company the U.S. government owns a majority stake in, posted its fourth straight profitable quarter, according to The Wall Street Journal. Due to lower revenue losses and a larger auto loan book, Ally has begun to redeem its liquidity after two years of trying to reconstruct the company under governmental auspices.
 The company racked up a $79 million profit for the fourth quarter of 2010, a far cry from the roughly $5 billion it lost during Q4 2009. However, revenues increased by as much as $1.9 billion over the last four quarters. The company's North American auto finance sector accumulated $589 million in Q4 2010 profit - a 72 percent increase from the same time in 2009. Chief executive Michael A. Carpenter told the news source that 2011 plans focus on paying back the federal government, which infused billions to prop up the company as part of the auto industry bailout in 2008 and 2009. Ally is a lender for dealerships and buyers of General Motors and Chrysler, becoming a holding company in 2008 during the height of credit crisis. As part of its transition, it received $17.2 billion in federal support.