Shareholders have approved the sale of AmeriCredit to General Motors in a move designed to strengthen the automaker’s ability to offer subprime loans to prospective car buyers.
AmeriCredit, which specializes in bad credit car loans, was acquired by GM in July for an estimated $3.5 billion. The final step of the deal was to get approval from the company’s shareholders, meaning that buyers who visit a GM dealership in the near future may see their range of financing options increased if they have less-than-stellar credit.
In the wake of the economic recession, tightened lending standards meant that many with bad credit were turned away when applying for a car loan. That hurts GM’s business model, as consumers who are denied a loan mean fewer sales for the company. With an important initial public offering coming soon, GM’s move puts it in a better position to attract a wider range of customers.
“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.”
Those with bad credit may want to consider GM and AmeriCredit as a source of financing. GM offers vehicles under its Chevy, Buick, GMC and Cadillac brands.