General Electric Credit Buys BankAmerica Car Leasing Unit
SAN FRANCISCO (AP) _ BankAmerica Corp. has sold its automobile leasing subsidiary to General Electric Credit Corp. for $215 million, the companies have announced.
The Santa Clara-based BancAmerica Acceptance Corp. owns 16,000 vehicles and controls auto leases and other assets. Its 70 employees were expected to keep their jobs with GE, a BankAmerica spokesman said Thursday.
The sale closed on Sept. 30, GE Credit said in a news release from its Stamford, Conn. headquarters.
″The sale of this business is another step in our program of disposing of non-strategic lines of business, redeploying the capital proceeds into the strategic lines of business,″ said executive vice president Stephen McLin.
Industry analysts predicted BankAmerica Corp, which has been selling off some of its assets to raise cash, would break even or report a small loss for its third quarter. The company said it expected a third-quarter pretax gain of $20 million from the sale of BancAmerica Acceptance.
BankAmerica, the second-largest U.S. bank holding company after Citicorp, in the past 18 months has sold off assets that include its FinanceAmerica unit to Chrysler for $405 million, its San Francisco headquarters for $640 million and its half-share of Arco Plaza in Los Angeles, from which it expects to post a $70 million third-quarter gain.
GE Credit, General Electric’s financing unit, has assets of more than $22 billion. Its automotive financial services division, based in Barrington, Ill., owns auto auctions and offers a range of auto financing services.