GMAC Financial Services is to considerably scale back its European automotive finance business.
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The company said in a statement that the move was “part of a strategic approach to manage resources during this time of significant capital and credit market disruption.”
The actions include ceasing retail originations in Czech Republic, Finland, Greece, Norway, Portugal, Slovak Republic and Spain. The move will become effective from November.
”In these markets as well as in Hungary and Denmark, GMAC will assess the implications of this challenging environment with the aim of diversifying funding sources for dealers over time,” the statement said.
GMAC will also implement a more conservative pricing policy throughout its European markets to more closely align lending activity with the current capital markets, the company said.
It will continue to lend in 11 other European markets, including the UK, Poland, Italy, France, Switzerland and Belgium.
Masterlease, GMAC’s global full-service leasing business will not be affected by these changes.
As reported earlier this week, by just-auto, GMAC is also pulling out of retail and wholesale vehicle financing in Australia and New Zealand
