Detroit: In a bid to woo shying customers, General Motors (GM), just over a year after it filed for Chapter 11 (bankruptcy), sets out into the market and opts to buy AmeriCredit Corp. for a whopping all cash $ 3.5 Billion deal.
On June 1, 2009, GM had filed for bankruptcy and the U.S. Govt. had to chip in, buying 61% of the stake. A year and a month later GM ventures out to make a heroic deal of $ 3.5 Billion.
After GM sold off a controlling stake in GMAC in 2006, car shoppers were finding it very difficult to get their finances arranged once they lined up to buy a GM car. As such the dwindling business of GM suffered further setbacks with the company missing on its sales numbers.
This deal, its anticipated will give GM a captive finance arm which will give car shoppers a smoother financial experience while shopping for cars.
The great recession of the 2009 not only redefined global economics, it also brought out the precarious fiscal health of the U.S. Govt. currently bogged down under a staggering and constantly skyrocketing national debt of $ 13.2 trillion with a daily borrowing of $ 70 Billion, for running its daily expenses, from countries like China, Japan and India.
In such a delicate scenario all it remains to be seen is whether making an all cash heroic deal of $ 3.5 Billion will further pile on to the existing fiscal burden on the U.S. and its taxpayers.
The GM Deal awaits stockholder approval.
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