Where did they get this money?????
DETROIT — General Motors said Thursday that it had agreed to buy a financing company, AmeriCredit, for $3.5 billion so it can lease more vehicles and increase sales to consumers with lower credit ratings.
The transaction, expected to close in the fourth quarter, gives G.M. a captive financing arm for the first time since 2006, when it sold control of GMAC Financial Services. G.M. recently considered starting a new financing arm or reacquiring GMAC, now known as Ally Financial, to strengthen its lending capabilities and to raise the carmaker’s value ahead of a public stock offering.
“Our dealers have been telling us that not having an in-house finance arm hurt our ability to finance certain loans and leases,” Edward E. Whitacre Jr., G.M.’s chief executive, said in a conference call. “It hurt our ability to meet rising customer demand for G.M. cars and trucks. Now we’re going to fix that.”
Shareholders of AmeriCredit, which is based in Fort Worth and has 3,000 employees, would receive $24.50 a share, a 24 percent premium over Wednesday’s closing price of $19.70. AmeriCredit was founded in 1992 and has assets of about $10 billion.
G.M. will use money from its cash reserves, which stand at more than $30 billion as a result of the aid it received from the federal government before and during last year’s bankruptcy.
“We’re in the fortunate position that we have a very strong balance sheet,” G.M.’s chief financial officer, Christopher P. Liddell, said. “That gives us the flexibility to do acquisitions like this.”
G.M. said its ownership of the company would have minimal impact on its balance sheet and would not detract from its goal of regaining a strong investment-grade credit rating. AmeriCredit will maintain direct access to the capital markets for financing requirements, G.M. said.
G.M. executives have been seeking ways to improve sales in North America, where its earnings have greatly improved, but market share in the United States remains below year-ago levels. Owning AmeriCredit would let the company offer more leases and approve customers that Ally or other banks might have rejected.
G.M. said its sales to customers with subprime credit ratings have increased “significantly” since beginning a program with AmeriCredit aimed at writing loans for shoppers in that category last September. Ownership of AmeriCredit, which already has a relationship with about 4,000 G.M. dealerships, “will allow us to provide a full range of financing alternatives for all customers throughout all economic cycles,” Mr. Liddell said.
General Motors said it would continue to use Ally Financial and other banks to procure financing for prime customers. The company still owns 9.9 percent of Ally; it was required under federal law to sell the rest of its stake so that Ally could convert itself into a bank. Ally also provides financing to customers of Chrysler dealerships.
Currently, subprime customers account for 4 percent of G.M. sales, in line with the industry average, but about 40 percent of the population has a subprime rating, Mr. Liddell said.
“At the margin those are very good sales,” he said. “An extra percent here and an extra percent there will make a big difference from a sales point of view.”
Only 7 percent of the G.M.’s vehicles are leased, compared with an average of 21 percent for the industry. G.M. and other automakers sharply cut back on leasing, which is more popular for upscale vehicles, when the credit markets tightened in 2008.
AmeriCredit’s chief executive, Daniel E. Berce, said the company did not plan to stop financing customers of G.M.’s competitors. G.M. currently accounts for 15 percent of AmeriCredit’s business.
Mr. Berce said most of AmeriCredit’s 800,000 customers had credit ratings of 500 to 650. A rating below 640, on a scale that ranges from 300 to 850, is generally considered subprime.
Thursday, July 22, 2010
Monday, July 19, 2010
Monday, June 7, 2010
What if 20 million illegal aliens left the United States Today???
Tina Griego, journalist for the Denver Rocky Mountain News wrote a column titled, "Mexican visitor's lament" --
She interviewed Mexican journalist Evangelina Hernandez while visiting Denver last week. Hernandez said,
"They (illegal aliens) pay rent, buy groceries, buy clothes...what happens to your country's economy if 20 million people go away?"
That's a good question - it deserves an answer. Over 80 percent of Americans demand secured borders and illegal migration stopped. But what would happen if all 20 million or more vacated America? The answers may surprise you!
In California , if 3.5 million illegal aliens moved back to Mexico , it would leave an extra $10.2 billion to spend on overloaded school systems, bankrupted hospitals and overrun prisons. It would leave highways cleaner, safer and less congested. Everyone could understand one another as English became the dominate language again.
In Colorado, 500,000 illegal migrants, plus their 300,000 kids and grand-kids - would move back "home," mostly to Mexico . That would save Coloradans an estimated $2 billion (other experts say $7 BIL) annually in taxes that pay for schooling, medical, social-services and incarceration costs. It means 12,000 gang members would vanish out of Denver alone.
Colorado would save more than $20 million in prison costs, and the terror that those 7,300 alien criminals set upon local citizens. Denver Officer Don Young and hundreds of Colorado victims would not have suffered death, accidents, rapes and other crimes by illegals.
Denver Public Schools would not suffer a 67 percent drop out/flunk out rate via thousands of illegal alien students speaking 41 different languages. At least 200,000 vehicles would vanish from our gridlocked cities in Colorado .
Denver 's four percent unemployment rate would vanish as our working poor would gain jobs at a living wage.
In Florida , 1.5 million illegals would return the Sunshine State back to America , the rule of law and English.
In Chicago , Illinois , 2.1 million illegals would free up hospitals, schools, prisons and highways for a safer, cleaner and more crime-free experience.
If 20 million illegal aliens returned "home," the U.S. economy would return to the rule of law. Employers would hire legal American citizens at a living wage. Everyone would pay their fair share of taxes because they wouldn't be working off the books. That would result in an additional $401 billion in IRS income taxes collected annually, and an equal amount for local state and city coffers.
No more push '1' for Spanish or '2' for English. No more confusion in American schools that now must contend with over 100 languages that degrade the educational system for American kids. Our overcrowded schools would lose more than two million illegal alien kids at a cost of billions in ESL and free breakfasts and lunches.
We would lose 500,000 illegal criminal alien inmates at a cost of more than $1.6 billion annually. That includes 15,000 MS-13 gang members who distribute $130 billion in drugs annually would vacate our country. In cities like L.A, 20,000 members of the "18th Street Gang" would vanish from our nation. No more Mexican forgery gangs for ID theft from Americans! No more foreign rapists and child molesters!
Losing more than 20 million people would clear up our crowded highways and grid lock. Cleaner air and less drinking and driving American deaths by illegal aliens!
Drain on America 's economy; taxpayers harmed, employers get rich: Over $80 billion annually wouldn't return to their home countries by cash transfers. Illegal migrants earned half that money untaxed, which further drains America 's economy - which currently suffers an $8.7 trillion debt.
At least 400,000 anchor babies would not be born in our country, costing us $109 billion per year per cycle. At least 86 hospitals in California , Georgia and Florida would still be operating instead of being bankrupted out of existence because illegals pay nothing via the EMTOLA Act. Americans wouldn't suffer thousands of TB and hepatitis cases rampant in our country-brought in by illegals unscreened at our borders.
Our cities would see 20 million less people driving, polluting and grid locking our cities. It would also put the "progressives" on the horns of a dilemma; illegal aliens and their families cause 11 percent of our greenhouse gases.
Over one million of Mexico's poorest citizens now live inside and along our border from Brownsville , Texas to San Diego , California in what the New York Times called, "colonias" or new neighborhoods. Trouble is, those living areas resemble Bombay and Calcutta where grinding poverty, filth, diseases, drugs, crimes, no sanitation and worse. They live without sewage, clean water, streets, electricity, roads or any kind of sanitation. The New York Times reported them to be America 's new " Third World " inside our own country. Within 20 years, at their current growth rate, they expect 20 million residents of those colonias. (I've seen them personally in Texas and Arizona ; it's sickening beyond anything you can imagine.) By enforcing our laws, we could repatriate them back to Mexico .
High integrity, ethical invitation:
We invite 20 million aliens to go home, fix their own countries and/or make a better life in Mexico . We invite a million people into our country legally more than all other countries combined annually. We cannot and must not allow anarchy at our borders, more anarchy within our borders and growing lawlessness at every level in our nation.
It's time to stand up for our country, our culture, our civilization and our way of life.
Subscribe to:
Posts (Atom)
