Chrysler wary of GM's plan to reclaim its lending unit

AUTOMOTIVE

Chrysler wary of GM's plan to reclaim lender

Chrysler's chief executive raised concerns Thursday about reports that rival General Motors is interested in buying back its former automobile financing business, now known as Ally Financial.

Sergio Marchionne told reporters that Chrysler was wary of being at a disadvantage in offering lease and loan deals. Ally, formerly GMAC Financial Services, is the preferred lender for both GM and Chrysler after the Obama administration wound down Chrysler's lending arm.

"That would make us very, very concerned, and we would have to look for alternative ways of financing our portfolio," he said.

Auto manufacturers can benefit from having a lender, shaping loan terms to boost their bottom lines. Competitors such as Ford and Toyota control their own financing arms.

-- Associated Press

REGULATORS

FCC chief: Policies will enhance broadband

Federal Communications Commission Chairman Julius Genachowski said his push for more stringent regulations on Internet providers is designed to help the United States catch up to other countries in broadband services.

The FCC's priorities are to extend broadband access and use while keeping the Internet open and fair, he said at a conference in Los Angeles. Those priorities were threatened after a U.S. court ruled last month that the FCC lacked authority to regulate Comcast's Web practices, he said.