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Chrysler voices concerns over possible GMAC, GM integration

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Chrysler voices concerns over possible GMAC, GM integration

DREW JOHNSON

A Congressional Oversight Panel recommended in March that GMAC – now known as Ally Financial – should be re-merged with General Motors, but the idea seemed to gain little traction. However, GM is now said to be strongly considering the move, which has cross-town rival Chrysler a bit nervous.

As GMAC is the preferred lending arm of Chrysler, the Michigan automaker has a vested interest in the financial firm. Chrysler CEO Sergio Marchionne has voiced concerns that the reintegration of GMAC with GM could result in an uncompetitive relationship in terms of auto financing.

Although GM is considering buying back GMAC’s auto finance business — which remains separate from Ally Financial — nothing is yet set in stone. GM is also considering a plan that would see the auto giant establishing a completely new auto financing unit.

GM sold a 51 percent stake in GMAC in 2006 to former Chrysler owner Cerberus Capital Management. However, following the 2008 collapse for the auto industry, the U.S. government was forced to bailout the financial firm to the tune of $17 billion, resulting in a 56 percent government ownership.

link:

http://www.leftlanenews.com/chrysler-voices-concerns-over-possible-gmac-gm-integration.html

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