Ally Financial Completes Sale of China Joint Venture Stake

News provided by

Jan 05, 2015, 09:00 ET

DETROIT, Jan. 5, 2015 /PRNewswire/ -- Ally Financial Inc. (NYSE: ALLY) today announced that it completed the sale of its 40 percent interest in the China joint venture SAIC-GMAC Automotive Finance Company Limited (formerly known as GMAC-SAIC Automotive Finance Company Limited) to General Motors Financial Company, Inc. and GMAC UK PLC, each wholly-owned subsidiaries of General Motors Co. Ally received a payment of approximately $1 billion for the transaction and expects to record an after-tax gain of approximately $400 million in the first quarter of 2015 related to this transaction.

"We are pleased to have completed the final step in selling our international holdings and, with the sale of the China interest, Ally has received $9.4 billion in total proceeds from the sales of its international operations," said Chief Executive Officer Michael A. Carpenter.

"We begin 2015 with a fresh start and two extremely strong U.S. franchises in our dealer financial services and direct banking operations, and we remain committed to expanding upon these areas of strength over the coming year," Carpenter concluded.

The agreement to sell the joint venture interest was reached in the fourth quarter of 2012 and at that time it was classified as discontinued operations and presented separately from Ally's continuing operations financial statements.

About Ally Financial Inc.
Ally Financial Inc. (NYSE: ALLY) is a leading automotive financial services company powered by a top direct banking franchise. Ally's automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. Ally Bank, the company's direct banking subsidiary and member FDIC, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and interest checking. Ally's Corporate Finance unit provides financing to middle-market companies across a broad range of industries.

With approximately $149.2 billion in assets as of Sept. 30, 2014, Ally operates as a financial holding company.

Contact:
Gina Proia
646-781-2692
[email protected]

SOURCE Ally Financial