Ally Financial Inc., the former lending arm of General Motors, will become the preferred financing source for Mitsubishi Motors Corp. in the U.S, reported Bloomberg.
Ally will replace Mitsubishi’s captive finance company and provide lease and retail financing and insurance offerings at about 380 Mitsubishi dealerships, the Detroit-based bank said Monday in a statement. Terms weren’t announced.
Ally is seeking to replace business after General Motors Co. said in January it will use its own lending unit for leases on brands including Buick, Cadillac and GMC. Shares of Ally have declined 17 percent since its initial public offering last year.
Sales of new Mitsubishi vehicles in the U.S. rose 20 percent through March to 23,790, or 0.6 percent of the market, according to researcher Autodata Corp. That’s about an eighth of the 172,312 F-Series pickups sold by Ford Motor Co. dealers and less than a quarter of the 100,505 Toyota Motor Corp. Camry sedans delivered.