Ally, Wells Fargo prefer profit over volume, from Automotive News.
Ally Financial and Wells Fargo Dealer Services, two of the nation’s largest auto lenders, say growing competition has them ready to sacrifice market share to protect profits.
Both companies lead segments of the market, according to Experian Automotive. Ally Financial was No. 1 in combined U.S. new- and used-vehicle loan originations in the third quarter of 2014. Wells Fargo Dealer Services was No. 1 in used-vehicle financing in the third quarter.
Still, being the volume leader isn’t the goal, the lenders’ chief executives said in separate presentations at the Goldman Sachs U.S. Financial Services Conference 2014 in New York last week.
“The competitive environment remains tough,” said Michael Carpenter, CEO of Ally Financial. “Our goal here is not to be the biggest. We happen to be the biggest at the moment. Our goal is not to be the biggest; it is to do business that is profitable and that reinforces the strength of our franchise.”