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GM Buys AmeriCredit, Aims To Rebuild In-House Lender

GM Financial deal valued at $3.5 billion.

by on Sep.29, 2010

GM's purchase of AmeriCredit will permit it to create a new "captive finance" subsidiary.

With the $3.5 billion purchase of lender AmeriCredit, General Motors plans to create a new, in-house financing arm, GM Financial, to replace the “captive” lender long known as General Motors Acceptance Corp.

The Detroit automaker was recently rebuffed in its bid to regain control of GMAC, now known as Ally Financial.  Having a wholly-owned financing unit, GM believes, can help enhance its ability to sell cars, trucks and crossovers while providing an additional profit center of its own.

Industry Insight!

“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.