GM Financial closes deal for Ally's Brazil unit

October 1, 2013

NEW YORK (AP) -- GM Financial Co. on Tuesday said it completed its acquisition of Ally Financial's auto finance and financial service businesses in Brazil.

GM Financial said the deal gives it a presence in 19 countries and the ability to offer auto financing services to about 16,000 dealers. It bought Ally's operations in Europe, China, and some Latin American countries in 2012 for a total of $4.25 billion. The European and Latin American deals have already closed. The company is also getting Ally's stake in a joint venture in China.

Ally Financial Inc. is selling its international businesses and said it has received about $8.3 billion from those transactions so far. The sale of the Brazilian business generated proceeds of about $611 million.

GM Financial is General Motors Co.'s U.S. loan business. Automakers with their own finance arms often subsidize loans and leases to boost sales.

Ally was GM's financial arm until it was taken over by the U.S. government amid the 2008 banking industry meltdown. It is selling assets to raise money to repay the government for a $17.2 billion bailout. As of Sept. 27 , it still owed about $13.75 billion, according to the Treasury Department.

Shares of GM lost 3 cents to $35.94 in midday trading.