GM Inside News Forum - View Single Post - Breaking: GM looking at strategic options for GMAC

Bravada · 09-26-2008, 05:56 PM

Because that means you are financing yourself, while some happy-go-lucky subprime folks default on you and all you have are your own vehicles, slightly used.

In general, it makes a lot of sense to own your own financing corporation (if you're an automaker). But ATM, owning the huge amount of subprime debt is not the best option for GM.

09-26-2008, 05:56 PM	#6 (permalink)
Bravada GMI Europe Correspondent Join Date: Nov 2004 Location: Warsaw, Poland Posts: 13,836	Re: Breaking: GM looking at strategic options for GMAC Because that means you are financing yourself, while some happy-go-lucky subprime folks default on you and all you have are your own vehicles, slightly used. In general, it makes a lot of sense to own your own financing corporation (if you're an automaker). But ATM, owning the huge amount of subprime debt is not the best option for GM.