Ally Financial Inc. will pull out of its RV and transportation equipment finance segments to focus on the its core auto finance business.
Ally, one of the nation's largest auto lenders, is phasing out transportation equipment finance, which covers marine vessels, airplanes, rail cars and other nonautomotive vehicle assets that are originated directly with the customer, as well as the commercial and consumer lines of the RV business, Ally said in a statement Wednesday.
Doug Timmerman, president of auto finance for Ally, said in an email to Automotive News that the company is exploring the possibility of selling or winding down the businesses, but has nothing specific to announce at this time.
Ally would not specify what percentage of the company's portfolio is dedicated to those business lines, but it did say Ally's Commercial Services Group, which finances and leases commercial vehicles, will not be affected by the transition.
The company will continue to service existing RV consumer retail contracts, and it will notify those customers of any changes. Ally stopped accepting new applications earlier this month.
Ally RV dealers were informed about the change earlier this month. Timmerman said the company is working with commercial dealer customers on their timing needs to ensure a smooth transition to new finance providers.
Timmerman said the changes will allow Ally to turn more energy to auto finance.
"We have a long history in auto finance and it's what we do best," he said. "So maximizing the resources we have in support of dealers is the right step."