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GM buys Ally assets in Europe and Latin America

DETROIT (AP) -- General Motors' finance arm is buying Ally Financial's loan businesses in Europe, Latin America and part of a joint venture in China for $4.25 billion.

GM says having its own finance operations will let it to make low-interest loans and cheap lease deals. Automakers with their own finance arms often subsidize loans and leases to boost sales.

The move will help Ally repay a $17.2 billion bailout from the U.S. government during the banking industry meltdown of 2008. Before the meltdown, Ally was GM's financial arm. The government now owns 74 percent of Ally's common stock and $5.9 billion in preferred stock.

Ally has been selling assets to raise money for the repayment. So far it's received about $9 billion.