P&A Providers & Administrators
MenuMENU
SearchSEARCH

Ally IPO to Come Sooner Than Officials Expected, Geithner Says

December 17, 2010
2 min to read



Ally Financial Inc., the auto lender formerly known as GMAC Inc., will sell shares to the public sooner than government officials expected, U.S. Treasury Secretary Timothy Geithner said.


“We’re working very hard with the management and board of GMAC to achieve that outcome,” Geithner said today, referring to an initial public offering, in testimony to the Congressional Oversight Panel for the Troubled Asset Relief Program in Washington. “I don’t know how quickly but it’s going to be much sooner than we thought six months ago.”

Ad Loading...


An IPO would allow the government to begin withdrawing its support of Ally as officials look to exit bailouts undertaken during the financial crisis, Bloomberg reported. General Motors Co. said today it paid $2.1 billion to repurchase preferred shares owned by taxpayers.


“We are going to move as quickly as we can to replace the government’s investments with private capital, take those firms public, figure out a way to exit as quickly as we can,” Geithner said today.


Ally, the primary lender to dealers at GM as well as Chrysler Group LLC, has benefited from three bailouts totaling $17.2 billion. Michael Carpenter, chief executive officer of Detroit-based Ally, has said an IPO could happen as early as next year.


Ally’s Profits


Ally has posted three straight quarters of profit including a $269 million gain for the third quarter as consumers and dealers borrowed more for car and truck purchases. The company has also shown an ability to sell debt with declining interest rates this year, improving its access to funding sources, said Kirk Ludtke, a senior vice president at the Stamford, Connecticut-based brokerage firm CRT Capital Group LLC.

Ad Loading...


“Ally has performed well and the capital markets have mended themselves probably faster than the Treasury expected,” Ludtke said today in an interview. “They’ve demonstrated that they can access the capital markets in size and at attractive borrowing rates.”


Ally sold $2 billion of notes at 8.3 percent in February, Bloomberg data show. It then sold blocks of debt at rates of 8 percent and 7.5 percent before completing a $1 billion sale at 6.25 percent last month. During the same period, yields on high- yield bonds dropped 1.21 percentage points, according Bank of America Merrill Lynch’s High Yield Master II index.


Ally was the in-house finance arm of GM before the automaker sold a 51 percent stake to an investor group led by Cerberus Capital Management LP in 2006 for $7.4 billion.


More Industry

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →