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- iHaveNet.com: Autos
The world of auto financing will soon lose an iconic name.
Ally Financial Inc. has announced that it will rebrand its GMAC consumer and dealer-related auto finance operations in the U.S., Canada and Mexico and begin using the Ally name.
The company that used to be called General Motors Acceptance Corp. (GMAC) became Ally Financial in May. The rebranding of the auto finance operations will take effect next month.
The announcement of the rebranding of the GMAC consumer and dealer-related auto finance operations in the U.S., Canada and Mexico is a logical move for the company. Since the company offers financing not only for General Motors vehicles but also for vehicles from Chrysler and Saab, the switch to the Ally name makes sense. (Buying a Chrysler vehicle with GMAC financing has seemed like a bit of a disconnect that routinely prompted in-dealership questions from consumers.) At the same time, largely because of GM’s historical power in the marketplace, the GMAC brand gained a high level of awareness that Ally will have to work long and hard to achieve with its own brand.
The post-bankruptcy General Motors has considered the idea of establishing a new captive financing operation. For the short term, that idea is off the table, despite the fact that such an operation could aid its efforts to gain sales and market share. Of course, for decades GMAC was the captive finance arm that did aid those efforts before it found a life of its own. Now, the former GMAC is distancing itself still further from General Motors by dropping the GMAC brand name. Instead of a captive finance company, GM might work with a consortium of banks that would offer loans to individuals, but the loan acquisition process for the consumer would be a GM-branded experience.
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