about taking control of your destiny...
This is not about what is good for the consumer.
This is about using auto financing as part of the overall sales program.
Prior to the collapse, GM made MORE money with their financing program than they made selling their cars.
However, when the price of oil skyrocketed..., they could not sell gas guzzling SUV's and big pickups.
Worse, was the huge number of lease "returns" that came back to bite them.
Much worse was the fact that they simply could not sell "used" gas guzzlers.
They lost a TON of money.
Now, they want it back.
They might get it, too.
-----------
GM wants to re-enter the financing business
Source says automaker looking to buy back unit to compete with rivals
General Motors Co. executives want their own auto-financing arm so they can offer more competitive lease and loan deals, according to a person briefed on their plans.
GM dealers say that since GMAC is responsible for making its bottom line look good, it is less likely to lose money by offering to finance sweet lease deals or zero-percent financing. A GM-owned auto financing business would be more likely to "take a bullet" for the company to sell more cars and trucks
========
No comments:
Post a Comment