GM to Complete Acquisition of AmeriCredit
General Motors’ acquisition of AmeriCredit Corp. was expected to close on Friday, three days after AmeriCredit’s stockholders approved the sale. The company will be renamed General Motors Financial Company Inc. (GM Financial).
DETROIT — General Motors’ acquisition of AmeriCredit Corp. was expected to close on Friday, three days after AmeriCredit’s stockholders approved the sale. 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.
“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.”
The all-cash transaction is valued at approximately $3.5 billion. The company was expected to file a Certificate of Merger with the Texas Secretary of State on Sept. 30, making the merger effective on Oct. 1.
“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, said GM officials. They added that the acquisition will 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 also 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.
More Auto Finance
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →