GM Ramps Up Risky Subprime Auto Loans To Drive Sales

INVESTOR'S BUSINESS DAILY ^ | 7/27/12 | DAVID HOGBERG

[Nachum]

President Obama has touted General Motors (GM) as a successful example of his administration's policies. Yet GM's recovery is built, at least in part, on the increasing use of subprime loans.

The Obama administration in 2009 bailed out GM to the tune of $50 billion as it went into a managed bankruptcy.

Near the end of 2010, GM acquired a new captive lending arm, subprime specialist AmeriCredit. Renamed GM Financial, it has played a significant role in GM's growth .

The automaker is relying increasingly on subprime loans, 10-Q financial reports shows.

Potential borrowers of car loans are rated on FICO scores that range from 300 to 850. Anything under 660 is generally deemed subprime.

Subprime Key Driver

GM Financial auto loans to customers with FICO scores below 660 rose from 87% of total loans in Q4 2010 to 93% in Q1 2012.

[Spktyr]

Hey, look, free rental car!

[sarasmom]

Ah, I see where you are confused.
The GM Financial entity cited is not the same entity as the GM vehicle manufacturing entity.
Closely related separate divisions, but ultimately owned by the same group.
When trying to comprehend where all the taxpayer money went, one has to be careful to be very specific about questioning which GM company ultimately received the bailout money, and which ones are supposedly repaying the “loans”.
The money made the former bad loan departments of the GM financial divisions “whole”.
The GM manufacturing divisions will need more future
taxpayer funded bailouts for their Union retirement divisions.

It sucks to be on the bottom tier of a ponzi scheme.
Especially when one (we, the majority of USA taxpaying citizens) did not willingly participate in or benefit from it.

But supposedly it is vital for our nation that the total collapse of GM, and RICO charges GM, be delayed for as long as possible...

Yeah, that last part continues to confuse me, too!

[LibLieSlayer]

Go to You Tube and search on GM CEO, China and watch and listen to this communist ceo and how his plans are to remove most of gm from America and move it all to china... R&D, the Cadillac division etc and they already have 28 plants operating there now. 7 out of 10 gm cars built today are built outside of the USA. He also said that gm was proud to work in china, with china and FOR china.

LLS