GM proudly announces that they will be opening new dealerships on the East and West coasts. Ain’t that grand! I have to wonder if the dealers that got screwed not to long ago when Obama and the boys took over will have a shot?
Buried deep in the article are a couple paragraphs bragging about their new, feel good, best thing since French Toast program to get low income folks with questionable credit into leases. Sound familiar? Guess who’s going to be on the hook when the gas prices go up and people can’t afford the payments? Kind of like the sub prime housing issue from so long age that hardly anyone could possibly remember.
The executives also said GM will expand lease deals for buyers with poor credit. GM Financial Co., the company’s recently acquired finance operation, just finished a successful experiment with lease deals in Ohio for buyers with credit scores of 620 or below. The deals, on the Cruze compact, will now spread to other states.
The executives conceded that GM Financial is competing on sub prime deals with Ally Financial, GM’s own former finance arm, which was bailed out by taxpayers and is still 74 per cent owned by the federal government.
Ally last week picked four investment banks to handle an initial public stock offering, people familiar with the plans said.
They spoke on condition of anonymity because they were not authorized to discuss the plans in public.
The Treasury Department hopes to get back at least some of the taxpayers’ $17.2 billion in bailout money through the stock sale. It’s the latest attempt by the government to recoup taxpayer money spent rescuing companies in the financial sector and auto industry during the economic downturn