GE Plans to Sell Fleet Services
FAIRFIELD, CT – General Electric has announced plans to sell off its fleet management and commercial lending and leasing businesses over the next two years to allow it to focus on continued investment and growth in its industrial businesses.
GE expects to recoup $35-billion and announced a deal to sell off $26.5-billion worth of real estate holdings on April 10.
GE Capital Fleet Services is a commercial lending and leasing unit specializing in middle-market financing to dealers, franchisees, and companies with $10-million to $1-billion in annual revenue. It will be sold off, but the company maintains it is “fully committed to serving customers during this period and going forward until a sale is complete.”
“Nothing changes in our relationship with customers today. All customer agreements will remain in place,” according to a company statement.
In 2013, GE Capital Fleet Services reported 829,731 vehicles funded and managed in the U.S. It currently has 250 customers operating around 47,000 vehicles.
Corporate parent GE told investors they’re selling some of their assets due to a weakening in its competitive position, the position of finance as a non-core business, an attractive market for the sales, and the regulatory environment.
GE added: “GE Capital has been an important part of the history of GE. However, the business model for large, wholesale-funded financial companies has changed, making it increasingly difficult to generate acceptable returns going forward.”
“We anticipate being able to sell our businesses to buyers who are fully committed to and invested in the financial services industry and can offer a good environment for growth.”
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