CEO says $3.5 billion deal makes GM more competitive in auto financing
DETROIT — General Motors Co. says it will acquire auto financing company AmeriCredit Corp. so it can increase leasing and make more loans to buyers with low credit scores.
The Detroit automaker says it will pay $3.5 billion to buy all of AmeriCredit's stock at $24.50 per share — a 24 percent premium over Wednesday's close.
It expects the deal to close in the fourth quarter.
GM CEO Ed Whitacre said Wednesday the deal will make GM more competitive in auto financing. GM executives have said their sales have been hurt by a lack of subprime and lease financing.
The company says that Ally Financial — formerly known as GMAC — will continue to finance GM's dealer inventory and make loans to buyers with good credit.
GM says it is not considering a purchase of Ally's auto financing unit.
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7 comments:
Bad credit? Get yourself in an Escalade....great idea.
Why in the hell is a bankrupt company buying another company WITH OUR TAX MONEY? Face it people-the government has sold us out to the unions. This regime MUST be stopped.
Great, next the fed gov't will be able to bail out an automaker and bank all in one.
They could care less if you have no credit or if you can make payments, as long as they get a sale and you sign a contract with a interest rate of 20.00%... But hey like all the hoodies say you cant drive your house,but you can live out of your car..
Unbe(f*ing)lievable. GM takes a bailout (our tax money) then goes bankrupt!! THEN the government (our tax money) takes control of it. NOW the idiots buy a high risk secondary finance organization with some MORE of OUR frigging tax money. I'm just sick and tired of this whole damn mess. Does no one remember what the cause of this recession was !!! for crap sakes !! NOBODY with any common sense at all should buy any product with a GM name plate on it.
Remember folks, November will be here soon. Do not forget that this happened. Your tax money at work, again.
THe purpose of the bailout was to get this company back on good footing. If having an in-house lender assists in this, I would think you would applaud a good move by the company
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