Ally Financial plans to sell GM some international auto-finance businesses worth $4 billion.
GM’s bid includes Ally’s 40% stake in an auto-lending JV in China and operations in Latin America and Europe. The non-US assets Ally was seeking to shed in May did not include the China business. Although GM is the leading bidder for Ally’s operations, there are other investors interested in the company’s assets.
GM and Ally are expected to reach an agreement next week as Ally Chief Executive Officer Michael Carpenter announced in a conference call on November 2nd that the company will give the news on its assets this month.
“We continue to be focused on maximizing shareholder value and finding the best solutions for the remaining international operations,” Gina Proia, a spokeswoman for Detroit-based Ally, said in a phone interview.
Ally is selling its assets as it tries to repay taxpayers for the $17.2 billion loan offered by the US government during credit crisis. On November 1st, Ally announced it has paid back the $2.9 billion loan offered through the Federal Deposit Insurance Corp.’s Temporary Liquidity Guarantee Program, which helped the new-car lender make thousands of extra loans when credit was tight.