General Motors sells 8.5% stake in Ally Financial for about $900M
Automaker said former loan and mortgage arm will continue to make loans to GM dealers, customers
DETROIT—General Motors says it has sold its 8.5 per cent stake in Ally Financial for about $900-million.
The Detroit automaker said it expects to record a gain of $500-million from the deal in its fourth-quarter earnings.
It wouldn’t say who bought the stake, which was sold in a private placement.
Ally is GM’s former auto loan and mortgage arm.
It had to be rescued by the United States government at the height of the financial crisis.
The Treasury Department still holds a 64 per cent stake in Ally, with the rest held by a mix of institutional investors.
GM says the deal gives the company more financial flexibility.
It says Ally will continue to make loans to GM dealers and customers.