General Motors Co. plans to use its GM Financial lending arm as the exclusive provider of subsidized leases in the U.S., a move that could help boost earnings while significantly increasing the Detroit auto giant’s exposure to auto loans, the Wall Street Journal reported today. The move, which largely edges out Ally Financial and U.S. Bank from GM’s lucrative subsidized leasing business, comes nearly a decade after GM sold GMAC (later renamed Ally). At the time of the sale, GM’s credit ratings were dragging down the ratings of the finance arm, and the automaker was in need of cash.
