Ally Financial Loses GM’s Chevrolet Lease Business

General Motors Co. says it will stop sharing lease subsidies for its Chevrolet brand vehicles with Ally Financial Inc. Instead, GM will steer all such subsidies to its own GM Financial captive finance company.

GM also will cut back but not eliminate the proportion of such subsidies shared with U.S. Bank. The policy change will take effect on April 1.

The move follows a similar action that dropped Ally on leasing deals for GM's Buick and GMC brands in February and for Cadillac on March 1. Moving a higher proportion of leases in-house will give GM a more complete picture of its lease customers and presumably a better chance of retaining them.

Ally cautions in a regulatory filing that GM's four brands accounted for 23% of its contracts. The company notes that failing to offset their loss could have a "material adverse effect" on its results.