Ford Motor Co. (NYSE: F) announced today that it has agreed to acquire GMC for an undisclosed amount, marking the second time the carmaker has entered into a multi-year lease agreement with a global vehicle lease company.
The deal is expected to close in the first half of 2020.GMC’s portfolio includes leasing solutions for the global automotive industry, including lease agreements with leasing companies including Acura, Chevrolet, Honda, Lincoln, Mazda, Nissan, Subaru, Toyota, and Volkswagen.
The company has also signed leases with other major auto manufacturers, including Ford, Chrysler, GM, GMC, and Ford.
Ford plans to retain its leadership in the leasing space in the near term, said John Schulman, vice president of leasing at Ford.
The acquisition of GMC will allow Ford to leverage its existing business, which includes leasing and other automotive businesses, in the automotive space, he said.
Ford has previously said that it plans to enter into multi-million dollar leasing deals with some of its largest brands and brands, including Chevrolet, Chrysler and Ford Motor Company.
The acquisition will provide Ford with access to a growing and highly competitive global leasing business, said Ford’s chief financial officer, Thomas A. P. Kline, in a statement.
“We are thrilled to acquire a proven leader in this industry and to add another level of global connectivity to the Ford family of brands,” he added.
The deal, worth $1 billion, will also add GMC’s leasing technology, and will include the services of an advanced global leasing analytics and analytics platform that will allow GMC to provide real-time information to Ford’s customers, he added, adding that GMC has demonstrated the capabilities of its data platform to the company.
The combined entity will operate out of GMA headquarters in Detroit.
Gmc, which has been in business since the 1980s, provides a comprehensive range of leasing solutions, including leasing for the Ford Focus and Chevrolet Volt, as well as leasing for Ford vehicles and other brands.
In 2016, GMC also agreed to lease its platform, called the Ford Finance Suite, to Volkswagen.
GMC provides services that allow customers to lease their vehicles, including financing and financing services.