GM vs GMAC, Throw down. How the manufacture is going after its captive.

In a stunning development, General Motors is incentivizing its dealers who not do business with GMAC. Automotive News reports that GM will pay its dealers $250 for every transaction they handle that is not financed with GMAC. Remember, General Motors owns half of GMAC. It’s like they’re paying their dealers to avoid using part of their own business. This follows moves we reported yesterday where GMAC announced it will only accept loans with customers who have very high credit scores of 700 or higher. That’s a much higher level than most GM customers can reach. GMAC is controlled by Cerberus, and it sure looks like GM and Cerberus are working against each other’s interests.
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Spectator - 10/17/2008 1:16:10 PM

+4 Boost

Makes sense.

GM need outside funds to flow in versus using its own companies distribution of credit to turn around and purchase the cars made by the brand name.

This way it helps reduce the in-house credit problem.

800over - 10/17/2008 2:24:57 PM

0 Boost

makes sense....yeah because they're losing money on every finance deal!