The problems facing General Motors in recent months is no secret by any means. Moreover, the not knowing what could become of the big corporation and how they might manage their resources going forward has also been in question. For now, General Motors appears to be working on a strategy that will benefit both the company, the employees and various auto owners. General Motors purchased AmeriCredit with the hope of easing some of the burden.
The cost of the purchase ranks right up there at $3.5 billion. This would give GM the opportunity to get to the customers with leases and loans who have managed to fall on hard times and have faulty credit ratings. Depending on who your check for a resource, U.S. shares are cheap right now but appear to be on the rise. Right now, GM is set to pay $24.50 per share which is a 24 percent premium to the closing share price. The move to purchase AmeriCredit should allow GM to move beyond the government’s stake in the company.
Morgan Stanley and JP Morgan Chase have already been hired to lead GM into this adventure. All the parties involved hope that the deal can be arranged and underway in early August. GM’s reasoning goes back to their ability to sell more cars by providing the lease financing and loans for customers who are struggling. This isn’t a blind partnership as GM already had a relationship with AmeriCredit and are simply looking to build on it.