US based automaker General Motors confirmed that it is interested to buy some of Ally Financial’s international auto lending assets.
“We’re interested in it, but we’re not going to bleed to buy it,” GM CEO Dan Akerson said in an interview today at Bloomberg’s New York headquarters. “We’re the natural buyer.”
Ally’s troubled mortgage unit Residential Capital LLC filed for Chapter 11 bankruptcy Monday, as Detroit-based Ally said it may sell its international businesses.
A GM acquisition could boost its auto lending abroad, especially in growing markets.
Ally is GM’s former in-house financing arm. GM accounted for about 34 percent of Ally’s loan originations in the most recent quarter, while Chrysler Group LLC (FIA.MI) represented 16 percent.
Ally’s health remains crucial to the U.S. auto industry and GM depends heavily on the lender. About 80 percent of the credit that GM dealers in the United States use to finance their inventories, known as “floorplan financing,” is from Ally.
GM had owned Ally’s predecessor, GMAC, until 2006, when GM sold 51 percent of it to Cerberus Capital Management LP.