Ally Financial Statement on the Automotive Financing Business
May 12, 2010
Comments on behalf of the company can be attributed to Ally Financial Chief Executive Officer Michael A. Carpenter .
DETROIT (May 12, 2010) – Ally Financial Inc. (Ally) is committed to supporting the auto industry with competitive financing products and services to enable vehicle manufacturers and auto dealers to achieve their goals of selling and leasing vehicles.
As a bank holding company, we have been able to consistently and cost-effectively provide financing to approximately 6,000 dealers and millions of consumers, which has led us to be the largest financing provider for both General Motors and Chrysler.
Today, we are better positioned to offer more stable funding through a variety of economic climates and to be more competitive from improved funding costs related to an increased level of deposit funding from our commercial bank and an improving business model.
Tom Durant of Classic Chevrolet in Grapevine, Texas and a member of GM’s National Dealer Council commented: “Our relationship with GMAC is working great. Going back to the way we were would be a step backwards. GMAC rates are very competitive.”
Mike Bowsher of Carl Black Automotive Group in Kennesaw, Ga. and co-chairman of Buick-GMC Dealer Council commented: “My business is thriving and GMAC is a big reason for that. GMAC is buying great. They get 70 percent of my retail financing business and all of my floorplan. Service has never been better. GMAC hasn't been this good in a long time. It feels like the old days again."
Steve Moore of Steve Moore Chevrolet in Charlotte, N.C. commented: “GMAC’s current, enhanced business model gives us a stable and competitive source of funding for all our wholesale and retail needs. We have an outstanding working relationship with GMAC, a relationship we have enjoyed for over 35 years!”
Ally, and its GMAC automotive financing operation, is committed to being the premier global automotive financing company, and the first quarter marked significant progress for the company. Ally posted an operational profit for the first time since the second quarter of 2007, re-entered the global capital markets and received credit rating upgrades.
As we continue our transformation, we remain committed to improving our performance, repaying the U.S. taxpayer, and providing our customers – automakers, dealers and consumers alike – with exemplary service and compelling products to meet their needs.