GE to Sell GE Capital Assets
General Electric Co. said it will sell most of its GE Capital assets in the next two years and听focus on its traditional industrial and manufacturing businesses.
GE Capital is one of the largest equipment-purchasing financers to the trucking industry, and GE Capital Fleet Services manages vehicles for shippers.
鈥淕E Capital, Transportation Finance and Fleet Services are among the businesses targeted for disposition,鈥 a GE spokesman told Transport Topics. 鈥淗owever, we鈥檙e fully committed to serving our customers, and we continue to value our long-standing customer relationships.
鈥淭hese businesses are market-leading franchises with talented professionals and valuable customer relationships. We anticipate being able to sell our business to buyers who are fully committed to and invested in the financial services industry and can offer a good environment for growth,鈥 the spokesman said.
GE Capital has been an important part of the history of GE, but the parent company said 鈥渢he business model for large, wholesale-funded financial companies has changed, making it increasingly difficult to generate acceptable returns going forward.鈥
GE said that by 2018 it expects more than 90% of its earnings will be generated by high-return industrial businesses, up from 58% in 2014. The company will take an estimated $16 billion after-tax charge in the first quarter of this year.
鈥淭his is a major step in our strategy to focus GE around its competitive advantages,鈥 GE Chairman and CEO Jeff Immelt said in a statement. 鈥淕E today is a premier industrial and technology company with businesses in essential infrastructure industries.鈥
Senior Writer Daniel P. Bearth contributed to this story.