With AmeriCredit’s shareholders giving General Motors the nod on its acquisition, GM will take ownership of the new company Friday.
The new subsidiary, to form the backbone of GM’s financing operations, will be called General Motors Financial Co.
Plans for the captive include a regional leasing program, set to be launched in the first quarter of 2011.
GM announced its intent in July to buy AmeriCredit for $3.5 billion. Fort Worth, Texas-based AmeriCredit has 3,000 employees and a $9 billion auto portfolio.
Separately, GM may seek to reduce the size of its planned initial public offering, according to recent reports. The automaker, 61% owned by the U.S. Treasury Department, may try to raise $8 billion to $10 billion in an IPO, rather than as much as $16 billion, as previously thought.
Maybe it has changed but the last time that I looked, most of the dealers profit came from his F&I operations. When a weak lender wants to ramp up volume and wants to get business fast, they either offer the best buy rate or loosen up all the underwriting.
I would suspect that the lender that makes the most money for the dealer, will get a good share of the business.
I wish you well with your system. I hope that lenders will start to think about what is best for the customer if we want the economy to recover more quickly.
http://www.generalmotorsfinancial.com
Sorry to see the name “AmeriCredit” go. It took a lot of work by a lot of people to make that name mean something and it carried quite a bit of weight. That name got me in many doors at many dealerships throughout the southeast.
Thanks Marcie, that is very helpful information. Want to get your thought on: what is benefit to GM going through the split of Ally and acqusition of AmeriCredit?
Do you know if GM Financial will continue to finance paper for non-GM stores. Obviously Americredit has relationships with many/all OEMs. Will those relationships continue or will they become a “captive” and serve GM only?