• Oct 3rd 2010 at 1:08PM
  • 23
General Motors is just about ready to start offering in-house financing once again. Its acquisition of AmeriCredit is complete, pending approval by AmeriCredit's shareholders. The merger is officially effective as of October 1st, 2010 and is an all-cash transaction valued at $3.5 billion.
The company will be renamed GM Financial. Having a captive finance arm allows GM and its dealers to expand finance and lease options, which is good news for both The General and its customers. GM Financial has targeted first quarter of 2011 to begin its initial leasing program.

You can read the full press release after the jump.

[Source: General Motors]

Show full PR text
GM to Complete Acquisition of AmeriCredit, with GM Financial Beginning Operations October 1
  • AmeriCredit to be renamed General Motors Financial Company, Inc.
  • Acquisition will allow GM to offer consumers more financing and leasing options
  • Launch of initial leasing program targeted by the end of first quarter 2011
DETROIT – General Motors announced its acquisition of AmeriCredit Corp. will close effective Oct. 1, 2010, following the approval of AmeriCredit's stockholders today. The company will be renamed General Motors Financial Company, Inc. (GM Financial).

The acquisition will form the foundation of the company's plan to create an in-house financing arm and allow GM to provide consumers more vehicle financing options across the U.S. and Canada. GM Financial will work closely with GM dealers to expand financing and leasing options, including a new regional lease program to be launched by the end of the first quarter of 2011.

Earlier today, AmeriCredit stockholders approved the all-cash transaction valued at approximately $3.5 billion. The company will file a Certificate of Merger with the Texas Secretary of State on Sept. 30, effective Oct. 1.

"This acquisition allows GM to offer an enhanced range of solutions for our customers and dealers, and establishes an important strategic capability for GM," said GM Vice Chairman and Chief Financial Officer Chris Liddell. "The speed by which this transaction occurred is evidence of how we are running GM today. We identified an opportunity and moved quickly to provide solutions for customers and dealers."

"While the name is changing, our commitment to our customers and dealers remains paramount," said GM Financial President and CEO Dan Berce. "We are excited to become a member of the GM family and look forward to the new opportunities this provides us."

The establishment of GM Financial will provide strategic capabilities to offer consumers a range of additional financing and lease options. Key partners, in particular Ally Financial, will continue to provide essential financing services, including dealer financing and prime retail financing.

With total assets of approximately $10 billion, the acquisition poses minimal impact to GM's balance sheet, and does not change GM's objective of achieving strong investment grade status. GM Financial will maintain direct access to capital markets for its funding requirements. GM Financial results will be reported as a separate segment within GM's consolidated financial results and will continue to report its results as a separate SEC registrant.

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 4 Years Ago
      If people are stupid enough not to know what they can afford then it is their fault. I dont care what a bank or corporation tells you, you should know what you can afford and buy.
      • 4 Years Ago
      How about instead of buying the credit houses so GM can profiteer from ripping off stupid people with loose credit, they purchase major insurance companies so we don't have to pay a dozen middle men to get our cars repaired or replaced?

      • 4 Years Ago
      They havn't paid us tax payers back and they are using our money to buy a BANK????
      Everyone should buy a FORD Product!!!!!!!!!!. At least they pay Taxes!!!!!.
      Wake up people GM is Government Motors.
        • 4 Years Ago
        Look at post
        See agenda-driven swill
        What do?

        Fail more Bob.
        • 4 Years Ago
        U do realize that FORD makes SUB-PRIME loans right???

        Sub-Prime for auto loans is not risky like HOMES

        Most Sub-Prime risk dissipates by year 2 of the loan... Normally a larger down payment is necessary, which takes care of depreciation costs if car has to be resold after REPO.

        Sub-Prime Auto lending is a GOLD MINE... and in actuality sustains the auto market. It is a HUGE necessity in the car business.. look at Honda's

        We should not confuse the old GMAC's Auto Loans with their SUB-Prime MORTGAGES. The Mortgages are what got it.. and CountryWide.. and Wells Fargo.. and so many others in trouble. $500K-1 million loans are much harder to foreclose and re-sell, especially when the home loan was made for those amounts and property values sink 10-20% in a coupla months, than $15K-100K Auto loans that U can REPO and Re-Sell at almost no loss at all, if any.

        I'm willing to bet that if Honda's Sub-Prime loans are 20% of their portfolio in sales.. then a great many of other companies are pushing 30% minimum. Hyundai probably sits at 40 to 45%. About 36% of the car loans made by banks and finance companies Q4 of 2009 were to subprime borrowers, according to Experian Automotive. GM's issue is that right now it is hitting at a very low (1%) percentile of that market. If they had this portion of sales money available to the public U would see their sales seriously bolstered.

        OH.. but U probably have an agenda right. How much does Ford pay U to post such ignorance
        • 4 Years Ago
        It's almost hilarious how so many whine and bitch about GM's bailout and how they're always complaining about getting paid back and then when GM makes a possitive move that actualy would increase business in order to pay the loans back, they still bitch and whine. Some people can't overcome being stupid.
      • 4 Years Ago
      ... and GMAC is now ALLY. What's going on? Does this just allow GM to continue with more shady business practices that may fail so they can get billions more taxpayer's money?
      • 4 Years Ago
      So they spun off and got rid of GMAC, but now GM wants to buy a different AC, and call it GM Financial?

      What, so they can be banks and get baselessly printed money at the FED discount window, too?

      Insanity is the word that describes doing the same thing over and over, expecting a different result.
      • 4 Years Ago
      I can't believe you really need an MBA to run one of America's iconic corporations into the ground and come full circle with this. Next step - get into home mortgages (Ditech).

      Forget the idiots that got degrees, but cannot see and think. We shouldn't let them run what remains of American business into the ground. Some of the most dynamic companies were created by driven, street smart people, who only graduated from high school.
        • 4 Years Ago
        Then why was GMAC into them?
        • 4 Years Ago
        Ditech was a part of GMAC.
      • 4 Years Ago
      For the record GMAC in Canada is now Ally.
      • 4 Years Ago
      Horrray! Now GM can go back to selling $70,000 SUVs to those with not-so-perfect credit scores.

        • 4 Years Ago
        Thumbing through today's paper, adds abound from all the dealers with one example from the local Toyota dealer. "Bad credit, no credit, low credit score no problem. Everyone drives".
      • 4 Years Ago
      Good move for GM. They shouldn't have spun off GMAC to begin with. That was one of the bad moves on top of countless bad moves from the old GM.

      Now they can offer auto loans with a subsidiary they control instead of taking terms from the spun off GMAC. In other words, compete again with the other big boys in the automotive industry.
      • 4 Years Ago
      GMAC = GM Absent Credit
      • 4 Years Ago
      "The merger is officially effective as of October 1st, 2010 and is an all-cash transaction valued at $3.5 billion."

      Good for them. I did not realize they were making that kind of a profit so soon.
        • 4 Years Ago

        Where are you getting your facts? We owe less then a trillion USD to china.

        Most of the debt is owed to US bond holders. Infact I believe less then 30% of the debt is owed to other countries,
        • 4 Years Ago

        I have to say bs on your numbers. If you add it all up you're telling me 90% of US government is own by countries that is not USA.

        If that is so true then China should be pushing their weight around against us instead of being pissy at us for new tariffs and our joint Asia war drills with Vietnam, Japan, S.Korea, Malay, Phillipines, Thai, and Cambo.

        Why don't the Chinese use their 40% of USA government to lobby for better economical policies instead of letting Obama add tariffs and shut him up on subjects of artificial currency values? Israel own less than 40% compare to China, according to your number and they've successfully lobbied more crap than China.

        So I think where ever you got these numbers you probably misread or misinterpreted.
        • 4 Years Ago

        Good for them. I did not realize they were making that kind of a profit so soon.

        Many thanks to our hard earned tax dollars and to the tax dollars of the Peoples Republic of China, not to be confused with the Republic of China (Taiwan). The PRC is now officially 40% owner of the Goverment of the USA. The Saudi's have another 40% and the Canadians 10%.
      • 4 Years Ago
      sooooo, are they paying back the loan money as well ???
    • Load More Comments
    Share This Photo X