GM to purchase, rename AmeriCredit tomorrow
Thursday, September 30th, 2010
Now, GM is set to close the $3.5 billion purchase this Friday on AmeriCredit, which will be immediately renamed General Motors Financial.
Earlier this week, AmeriCredit stockholders approved the all-cash deal valued at approximately $3.5 billion. The company will file a Certificate of Merger with the Texas Secretary of State today, which will become effective October 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 CFO Chris Liddell.
What Liddell is referring to is the current lack of full leasing offers by GM’s soon-to-be-ex financial arm, Ally Financial. Although Ally does offer some limited leasing programs, they are nowhere near as encompassing as GM would like to see, particularly for its luxury Cadillac brand which traditionally relies on leases to move cars.
Now, with the acquisition GM will be able to create an in-house financing arm and allow itself 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.