GM, Ford, and Stellantis are all looking to start banks in a softer regulatory environment
With average car prices nearing all-time highs and the Trump administration’s promise to be looser with regulations on businesses, Detroit’s big three automakers are all weighing the idea of starting their own banks.
Stellantis filed a request with the FDIC last month, GM did in January, and Ford applied back in 2022. Owning banks would allow the carmakers to offer loans and other financial services to their customers directly.
GM’s bank application says it would focus solely on auto lending, while Stellantis’ said it would offer loans and other products to auto dealers, along with (apparently) broader banking services for retail customers. Ford’s older application talks about solutions that would enable more Americans to afford EVs.
GM has tried this before. Its former financial arm, GMAC, received a $17.2 billion bailout during the financial crisis due to its exposure to subprime mortgages — a move called “baffling” by a watchdog report at the time. That institution would go on to eventually change its name to Ally Financial.
If the applications do get the OK, critics (which include existing banks and consumer advocacy groups) say it would open the floodgates to other industries that would also be interested in making deeper financial ties with their customers, like Big Tech firms and major retailers.
GM’s bank application says it would focus solely on auto lending, while Stellantis’ said it would offer loans and other products to auto dealers, along with (apparently) broader banking services for retail customers. Ford’s older application talks about solutions that would enable more Americans to afford EVs.
GM has tried this before. Its former financial arm, GMAC, received a $17.2 billion bailout during the financial crisis due to its exposure to subprime mortgages — a move called “baffling” by a watchdog report at the time. That institution would go on to eventually change its name to Ally Financial.
If the applications do get the OK, critics (which include existing banks and consumer advocacy groups) say it would open the floodgates to other industries that would also be interested in making deeper financial ties with their customers, like Big Tech firms and major retailers.
