Despite the Chapter 11 bankruptcy, General Motors has soared from the ashes to acquire AmeriCredit Corp. for $3.5 billion in order to get back into the credit business. Of course GM’s survival might not have been possible without the $57.6 billion TARP program.
GM car dealers will then have more options to lease and finance car sales. GM is buying AmeriCredit Corp. in an all-cash transaction that is valued at $24.50 per share. AmeriCredit will fill the role that GMAC was once responsible for.
“Adding AmeriCredit to our team will improve our competitiveness in auto financing offerings, and I am very pleased to have them on board,” stated GM CEO Ed Whitacre.
GM has been working with AmeriCredit to set up auto loans for customers that have poor credit ratings. GM will also continue to work with Ally Financial (the former GMAC finance company) for providing loans to customers with good credit. GM is preparing to have an IPO later this year or next year. This transaction is expected to close by the end of the year.