GMAC UK, once part of General Motors’ finance division, has signed a contract with MG Motor as the launch phase in a bid to broaden its manufacturer client base.
MG is GMAC UK’s fourth car brand. It is also the preferred finance supplier to GM’s Vauxhall and Chevrolet, and also to Saab, which the US group sold to Dutch businessman Victor Muller.
After two years of struggle Muller has sold Saab to China’s Pang Da and Youngman, losing around £60 million, but giving the Swedish brand’s dealers new hope.
Ed Paulat, managing director of Cardiff-based GMAC UK, says he is “extremely pleased” to enter a retail relationship with MG. His company is a subsidiary of Ally Financial Inc. (formerly GMAC Inc.), which describes itself as one of the world’s largest automotive financial services companies and owns Car Care Plan.
Ally Financial Inc. is saying little about its “multi-year” MG Motor deal. Spokesperson Sue Mallino at Ally’s Detroit HQ said: “It is a fixed number of years, but I cannot comment beyond multi-year. “
An MG Motor spokesman said: “GMAC won against competitors by offering the best fit for our business, and with the capability of support in mainland Europe.
"The agreement is designed to operate for several years as a long-term partnership.”