CMI, a diversified company with electrical, vehicle parts and finance operations, has been struggling over the future of its finance division, which has been on the market this year but was withdrawn from sale yesterday.CMI owns Capitalcorp Finance and Leasing, which operates through 40 outlets offering personal loans, commercial finance and insurance. Capitalcorp loans are originated through a number of lenders, including Esanda, GE Automotive Financial Services, Westpac, ANZ, National and St George.Its core business is finance for used motor vehicles. CMI acquired Capitalcorp in 2003 and only last year was investing in the business, establishing new outlets outside its home state of Queensland and developing a new online loan application facility, AutoCapital.The group has been under pressure since reporting a loss of $3.8 million in 2006/07. While the company's big problem was in its engineering division, since sold, the finance business was hit by a slowdown in used car sales, increased competition in used car finance and shrinking margins.The revenue contribution from financial services dropped from $29.5 million in 2006 to $26.2 million in 2007, and the "segment result" fell from $1.9 million to $90,000.The finance division reported a loss of $818,000 in the December half.This year the company has been selling assets to get back to core business. But yesterday it announced that Capitalcorp was off the market.Its statement said: "Due to the current environment in the financial services industry CMI has withdrawn the financial services division from sale. The company is undertaking an organisational restructure of Capitalcorp with a view to returning the division to profitability."