P&A Providers & Administrators
MenuMENU
SearchSEARCH

Ally to Delay IPO

June 10, 2011
2 min to read


Detroit-based Ally Financial Inc. has decided to delay an initial public offering because of weak market conditions, two people briefed on the matter said.


The mortgage and auto lender and bank holding company was expected to launch a road show ahead of an IPO planned before the July 4th holiday, reported The Detroit News.

Ad Loading...


The IPO could come in late July or early August, or be pushed until after the Labor Day holiday, when much of Wall Street returns from vacation, said the officials on Thursday. They asked for anonymity because the information had not been made public.


The U.S. Treasury Department plans to raise $5 billion as part of a $6 billion offering when Ally goes public. The Treasury Department owns a controlling 74 percent stake in Ally as part of the $17.2 billion bailout during the financial crisis.


The delayed IPO first was reported by the Financial Times.


Ally filed the paperwork March 31 in order to launch an IPO. Ally declined to comment Thursday night.


The Treasury is expected to sell some shares. Other owners such as General Motors Co., which holds a 9.9 percent stake in Ally, and Cerberus Capital Management LP, which holds a 9 percent stake, do not plan to sell shares.

Ad Loading...


Treasury has received about $4.9 billion in returns from Ally to date, including $2.2 billion in dividends and interest.


The company reported a $1.1 billion profit in 2010.


Citi, Goldman, Sachs & Co., J.P. Morgan and Morgan Stanley are advising Ally on its initial public offering.


With more than $172 billion in assets as of Dec. 31, 2010, Ally operates as a bank holding company.


Ally also has operations in mortgage and commercial finance, and the company's subsidiary, Ally Bank, offers retail banking products through its online arm.

Ad Loading...


Ally, which was known as GMAC Inc. until last year, was founded by GM more than 90 years ago as its in-house finance arm. It sold a 51 percent stake in the company in 2006 to Cerberus Capital Management LP in a $7.4 billion deal.


Ally said it raised its percentage of new car lending to 9.9 percent in 2010, up from 6.1 percent, to jump from third highest to the leading auto lender.


Bad market conditions could also delay other planned IPOs, including Troy-based Delphi, which filed for an IPO last month.


More Industry

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →