Ally departs RV and transportation equipment finance businesses
Rather than further diversify its portfolio, Ally Financial announced on Wednesday that it will condense its sphere.
In an effort to leverage its strengths, better optimize capital allocation and provide even more focused dealer support, Ally said it is taking strategic actions that will enable it to concentrate more on its core business operations. The company explained the renewed focus on its core strengths is at the heart of its recent decision to exit both the transportation equipment finance and the RV commercial and consumer lines of business.
“These actions allow us to put more energy and more resources into our core businesses and provide the greatest value to all of our stakeholders from dealers and consumers to shareholders and employees,’’ said Doug Timmerman, president of auto finance for Ally.
“We have a long history in auto finance, and it’s what we do best, so maximizing the resources we have in support of dealers is the right step,” Timmerman continued.
The company indicated that Ally RV dealers were notified of the decision earlier in August, with commercial dealers being notified personally.
“Our goal is to help dealers transition to new finance providers as smoothly as possible so they can maintain continuity of their businesses,” Timmerman said.
Ally said it is continuing to service consumer retail contracts, but will notify them if there are any changes.
Ally’s Commercial Services Group, which finances and leases commercial vehicles from small cars to heavy duty trucks, is not affected by these changes and remains a vital component of Ally’s value to a growing number of dealers in the space.
Transportation equipment finance covers marine vessels, airplanes, rail cars and other non-vehicle assets that are originated directly with the customer.
Ally stressed that this decision to exit the RV and transportation equipment finance lines of business “had nothing to do with projections for either industry.”