Ally Bank 2011 Annual Report Download - page 5

Table of Contents
Ally Financial Inc. • Form 10−K
Global Automotive Services
Global Automotive Services includes our North American Automotive Finance operations, International Automotive Finance operations, and
Insurance operations. Our Global Automotive Services business had $120.5 billion of assets at December 31, 2011, and generated $6.4 billion of total net
revenue in 2011.
Our primary customers are automotive dealers, which are independently owned businesses. As part of the process of selling a vehicle, automotive
dealers typically originate loans and leases to their retail customers. Dealers then select Ally or another automotive finance provider to which they sell loans
and leases.
Our Global Automotive Services operations offer a wide range of financial services and insurance products to over 21,000 automotive dealerships and
5.8 million of their retail customers. We have deep dealer relationships that have been built over our 90−year history. Our dealer−focused business model
encourages dealers to use our broad range of products through incentive programs like our Ally Dealer Rewards program, which rewards individual dealers
based on the depth and breadth of our relationship. During 2011 and 2010, 70% and 60%, respectively, of our U.S. automotive dealer customers received
benefits under the Ally Dealer Rewards program, which was initiated in 2009. We expect even higher participation levels going forward as all of our
automotive dealer customers are eligible to participate in the program. Our automotive finance services include providing retail installment sales contracts,
loans, and leases, offering term loans to dealers, financing dealer floorplans and other lines of credit to dealers, fleet leasing, and vehicle remarketing
services. We also offer vehicle service contracts and commercial insurance primarily covering dealers' wholesale vehicle inventories in the United States.
We are a leading provider of vehicle service contracts, and maintenance coverage.
Global Automotive Services is supported by approximately 8,600 employees worldwide. A significant portion of our Global Automotive Services
business is conducted with or through GM− and Chrysler−franchised dealers and their customers.
Automotive Finance
Our North American Automotive Finance operations consist of our automotive finance operations in the United States and Canada. At December 31,
2011, our North American Automotive Finance operations had $97.0 billion of assets and generated $3.6 billion of total net revenue in 2011. According to
Experian Automotive, we were the largest independent provider of new retail automotive loans in the United States during 2011. We funded one out of
every ten new car purchases that were financed in the United States during 2011. In the United States and Canada we have approximately 2,100 automotive
finance and insurance employees in five regions focused on serving the needs of our dealer customers with finance and insurance products, expanding the
number of overall dealer and automotive manufacturer relationships, and supporting our dealer lending and underwriting functions. In addition, we have
over 2,100 employees that support our North American servicing operations. We manage commercial account servicing for over 5,000 dealers in the United
States that utilize our floorplan inventory lending or other commercial loans. In the United States and Canada, we provide consumer asset servicing for a
$76.0 billion portfolio at December 31, 2011. The extensive infrastructure and experience of our servicing operation are important to our ability to minimize
our loan losses and enable us to deliver favorable customer experience to both our dealers and their retail customers.
Our International Automotive Finance operations are in Europe, Latin America, and Asia. At December 31, 2011, our International Automotive
Finance operations had $15.5 billion of assets and generated $901 million of total net revenue in 2011. Through our longstanding relationship with GM, we
have extensive experience operating in international markets and broad global capabilities. We currently originate loans in 15 countries (other than the
United States and Canada). Our international presence is focused on strategic operations in five core markets: Germany, the United Kingdom, Brazil,
Mexico, and China through our joint venture, GMAC−SAIC Automotive Finance Company Limited (GMAC−SAIC). In China, GMAC−SAIC is a leading
automotive finance company with broad geographic coverage and a full suite of products. We own 40% of GMAC−SAIC. The other joint venture partners
include Shanghai Automotive Group Finance Company LTD and Shanghai General Motors Corporation Limited. Brazil and Mexico remain markets that
we see as growth opportunities. In these markets we offer a full product line and have strong positions in the automotive dealer channel. Brazil and Mexico
comprise $5.0 billion of our total finance receivables and loans at December 31, 2011. Germany and the United Kingdom remain our core markets in
Europe with $5.7 billion of total finance receivables and loans at December 31, 2011.
Our success as an automotive finance provider is driven by the consistent and broad range of products and services we offer to dealers who originate
loans and leases to their retail customers who are acquiring new and used automobiles. In the United States and Canada, Ally and other automotive finance
providers purchase these loans and leases from automotive dealers. In other countries, we offer retail installment loans and leases directly to retail customers
of the dealers. Automotive dealers are independently owned businesses and are our primary customer. Our growth strategy continues to focus on
diversifying the franchise by expanding into different products as well as broadening our network of dealer relationships. During 2011, we continued to
focus on the used vehicle market, which resulted in strong growth in used vehicle origination volume compared to 2010. Additionally, during 2011, we
expanded the Ally Buyer's Choice product on new GM and Chrysler vehicles from Canada to select states in the United States. The Ally Buyer's Choice
financing product allows customers to own their vehicle with a fixed rate and payment with the option to sell it to us at a pre−determined point during the
contract term and at a pre−determined price.
Automotive dealers require a full range of financial products, including new and used vehicle inventory financing, inventory insurance, working
capital and capital improvement loans, and vehicle remarketing services to conduct their respective businesses as well as service contracts and guaranteed
asset protection (GAP) products to offer their customers. We have consistently provided this full suite of products to dealers.
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