General Motors wants to re-enter financing business

Posted: May 12, 2010
 Email 1 Comment

General Motors Renaissance Center

According to a source close to the company, GM execs want to get their hands back into the financing business, and establish their own auto-financing arm so that they can better compete by offering competitive lease and loan deals. The government now owns a 56% stake in GMAC – the former GM finance arm – after the company ran into trouble in the hands of previous majority stake holder, Cerberus Capital Management LP, the former owner of Chrysler.

The argument offered by GM execs is that a GM-owned financing company would be more apt to offer attractive lease and finance deals than an independent company, as said company would be responsible for its own bottom line, while a GM-owned company would be in the position of taking a proverbial bullet for the company.

Though company spokesperson Tom Wilkinson said on Tuesday that it would not be issuing comment, he mentioned that GM currently has attractive financing deals through Ally Financial (the renamed GMAC), and other banks and credit unions.

- By: Stephen Calogera

Source: MSNBC


Share |  Email  Print |




Subscribe & Connect

Connect with us on any of our social profiles below.

Subscribe to our e-mail newsletter to receive updates.

  • willid3

    i am thinking its probably a good thing. the main reason for every car company to have one is its cheaper for them to over cut rate that way than for a 3rd party to do it for them. after they would have to pay real cash to that banker to do the deals.