DETROIT -- General Motors Co. is in talks with several banks to arrange financing partnerships that would take advantage of more lenient terms with its former captive lender starting next year.
GM is talking with Santander Consumer USA Inc., Capital One, Wells Fargo, JPMorgan Chase and Bank of America, a person with knowledge of the situation said. The automaker turned elsewhere to supplement its dealers' subprime financing, leasing and floorplanning options after Ally Financial Inc., previously GMAC, turned down GM's overtures to buy control of its former captive lender, the source said.
According to an August regulatory filing, GM's contract requires it to work exclusively with Ally for most special financing deals. But starting Jan. 1, GM will be able to offer an unlimited number of financing deals with other banks, as long as Ally has an opportunity to participate, too.
The Wall Street Journal first reported GM's talks with other banks.