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.
Good question Frank.
The lender has complete control over the risk models and the terms they load.
They control all aspects of the loans they will accept and the dealer has no way to get around them. The dealer has no access to the lenders data that is loaded in the Lender Selection .
We designed the system with a Dealer and Lender section. Each separate from the other with the exception that the lender if they are selected by the Customer/Dealer can then have access to the Dealer section to see what the dealer has put together for the Customer.
The Lender could even have audio link up with the Customer as they set in the dealer’s office. It’s like the Customer, Dealer and Lender are all in the same room discussing the deal.
Even with the new legislation that Obama is trying to pass right now our system would work because the lender has final control over everything.
I believe most Dealers are basically honest and want to do the right thing while they make a living. It has too work for all parties and our system brings all the parties to the table.
Bill
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?