Profit at GM's Finance Arm Nearly Doubles in Third Quarter
The Fort Worth, Texas-based financial-services company was acquired by General Motors earlier this year for $3.5 billion. GM Financial noted it incurred $30 million in expenses during the quarter related to the acquisition.
GM announced the deal to purchase AmeriCredit in July and closed on the transaction Oct. 1. The all-cash purchase once again gave the Detroit auto giant a captive finance arm and increased its ability to offer loans to subprime customers.
GM used to own GMAC, now known as Ally Financial, but sold the unit for $7.4 billion three years ago in a bid to raise cash. Ally still supplies loans to GM, as well as Chrysler Group. In the second quarter, Ally financed 36% of GM's new retail sales in the U.S. and Canada, up from 28% last year.