You know that General Electric (NYSE: GE) makes light bulbs and washing machines. You've probably heard by now that it's also been dabbling in the mortgage market. But did you know it also rents cars?
I was surprised as you. But when rumors began swirling yesterday that GE could possibly purchase an auto-and-van leasing business from Royal Bank of Scotland (NYSE: RBS), I did a little digging. Surprisingly, it seems GE already owns a fleet of 1 million automobiles, which it leases out to customers around the globe. (Incidentally, this answers another question a lot of investors have been posing me lately: What's up with GE buying all those electric Volts from General Motors (NYSE: GM)? Turns out, GE may have a use for them after all.)
So in short, this rumor isn't quite as strange as it sounds. GE's expanding a business it already knows well. And with RBS under pressure to raise cash to repay its bailout to the British government, chances are GE can squeeze a good price out of a motivated seller. Sounds like good news for GE shareholders.
What will be GE's next move in its multiyear plan to restructure its business? Add the stock to your Fool Watchlist, and find out.
