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GM asks banks to fund subprime buyers

General Motors Co. says it is working with banks and other financial institutions so it can sell and lease more cars to buyers with poor credit.
/ Source: The Associated Press

General Motors Co. says it is working with banks and other financial institutions so it can sell and lease more cars to buyers with poor credit.

The talks lessen the likelihood of GM trying to buy the auto finance business from Ally Financial, its main lender. They also make it less likely that GM would start its own auto financing unit.

GM considered both options earlier in the year because Ally was reluctant to fund loan and lease deals to buyers with subprime credit. About 16 percent of all loans for new cars and trucks go to subprime buyers. GM recently has been unable to tap that market.

Spokeswoman Renee Rashid-Merem says GM's current strategies are working because sales are growing.