Ally Financial announced its succession plan this week since Bill Muir, the president and current head of the dealer financial services business, has elected to retire by year-end.
The company tapped Jeffrey Brown, currently senior executive vice president of finance and corporate planning, to the role of president and chief executive officer of the dealer financial services business. In this role, Brown will have oversight for the company's leading automotive finance, insurance and auto servicing operations.
Brown will continue to report to Ally CEO Michael Carpenter.
Muir will depart following a career of more than 30 years with Ally and its former parent. But the company said Muir and Brown are committed to an orderly transition of responsibilities over the coming months.
“Ally is fortunate to have a very strong management team that has helped to guide the company through a highly complex transformation over recent years,” Carpenter said.
“Bill has been instrumental in transitioning Ally’s dealer financial services business from its captive roots to a market-driven competitor that remains a leader in the industry,” Carpenter continued. “I want to thank him for his extraordinary leadership and his commitment to the business and Ally’s dealer customers.”
The company indicated Brown’s current financial responsibilities will be transferred to Ally chief financial officer Chris Halmy. With this move, Halmy will have responsibility for all of Ally’s finance, treasury and capital markets activities.
Brown, known in Ally circles by his initials, “JB” was appointed senior executive vice president of finance and corporate planning in June 2011 and has played a leading role in strengthening Ally’s capital and liquidity profile, executing on the company's strategic transformation efforts and repaying the U.S. taxpayer's investment.
Brown joined Ally in March 2009 as corporate treasurer and, prior to this, he was the corporate treasurer for Bank of America.
“JB is a proven leader and has been a critical force in helping to implement Ally’s strategic transformation,” Carpenter said. “He has worked closely with the dealer financial services team and, in his new role, is committed to advancing Ally’s leading dealer-centric business model.
“JB has a customer-focused mindset, and I am confident he will be a very effective leader for this business in the next chapter of Ally's evolution,” Carpenter went on to say.
Ally Financial Announces Renewal of $11.5 Billion in Credit Facilities
In other company news announced this week, Ally completed the renewal of $11.5 billion in credit facilities at both the parent company and at its banking subsidiary, Ally Bank, with a syndicate of 19 lenders.
Officials indicated the secured facilities can be used to fund retail, lease and dealer floor plan automotive assets in the U.S.
“Ally’s diversified funding strategy, including the renewal of these facilities, remains an important component in the continued growth of our leading U.S. auto finance franchise,” Ally corporate treasurer Bradley Brown said.
“With favorable interest from lenders, these facilities were renewed with improved terms, resulting in lower cost of funds, better funding efficiencies and further advancement of Ally’s liability management strategy,” Brown continued.
The $11.5 billion funding capacity is comprised of two facilities: an $8 billion facility which is available to the parent company, Ally Financial, and maturing in March 2016; and a second $3.5 billion facility available to Ally Bank which matures in June 2015.
Officials added the two credit lines renew existing Ally credit facilities.