General Motors Co. is in talks with financial institutions to broaden the availability of auto loans, a strategy that for now sets aside any plans to acquire its own lending arm, people familiar with the situation told The Wall Street Journal.

The carmaker has had trouble providing loans to more consumers, particularly those with weaker credit history, and views this as a barrier to winning back U.S. market share.

The company is looking to become more attractive on Wall Street ahead of an initial public stock offering expected later this year. GM—majority-owned by the U.S. government—plans to update stock analysts Tuesday on its finances and outlook.

GM sold control of its GMAC LLC finance arm three year ago, making it one of the few major vehicle sellers in the U.S. market without an in-house lender.

GM executives believe that entering into deals with other lenders such as major banks won't provide the same boost GM would receive with its own finance company, but see it as a step toward eliminating the disadvantage, these people said.

GM expects to continue its relationship with GMAC, now known as Ally Financial Inc., but the auto maker will look to other lenders to fill gaps where it feels GMAC hasn't been as willing to make loans, such as in subprime lending and leasing, these people said.

"By not financing [subprime] consumers, they are locking out about 40% of the U.S. population," said Melinda Zabritski, director of automotive credit for Experian Automotive.

The approach diminishes the possibility that GM will start its own finance company or try to regain control of GMAC's auto-lending business, two options the Detroit company studied in recent months. Ally wasn't interested in such a deal, the people familiar with the matter said.

GM dealers have complained that they are forced to turn away some customers because of an inability to tap financing.

A GM spokeswoman declined to discuss specifics but said the company is "using a multiprong approach to provide competitive financing for our dealers and customers."

Driving up sales is a key mandate from GM Chairman and Chief Executive Edward E. Whitacre Jr. The company's sales this year were up 15 percent through May compared to a year ago despite shedding four of eight brands, but rival Ford Motor Co., which owns Ford Motor Credit Co., increased its sales at twice that rate.