According to The Wall Street Journal, GM is revisiting the idea of buying back part of Ally Financial, just six months after Ally turned down a $5 billion GM bid for its wholesale business.
Rebuffed by Ally, which like GM was rescued by the U.S. government during the financial crisis, GM bought subprime consumer lender Americredit for $3.5 billion. GMAC changed its name and rebranded itself as Ally Financial.
But Dan Akerson, the new CEO of GM, is in favor of a renewed approach to Ally, the paper reported. GM would like to expand its in-house lending business so it is less vulnerable to market fluctuations during a downturn, the Journal said.
The U.S. owns 74% of Ally and 26.5% of GM, and could play a role in any deal between the two companies, the Journal reported. Ally is planning an IPO of its own later this year that would see the U.S. trim its stake in the company.
GM’s stock climbed 0.88% to $38.90 Tuesday morning, giving it a gain of 4.6% already this year.