Ally Financial Inc. – what used to be known as GMAC — plans sell its lending operations in Europe and Latin America, as well as its share in a joint venture in China, to General Motors Co. for $4.2 billion.
GM Financial, a wholly-owned GM subsidiary, will assume responsibility for the management of Ally’s international operations. The acquisition will also double the size of the GM Financial loan portfolio to more than $32 billion, General Motors’ Chief Financial Officer Dan Ammann said Wednesday.
“We’re bringing those assets back into the family, which we think will help us increase our sales around the world. We have a lot of new product launches coming all around the world, across Asia and China, Ammann said during a conference call with reporters. “It will help drive top line growth,” he said, adding, “We couldn’t be more pleased.”