• frank Posted: 6/24/2010 12:00pm PDT

    Its very good to hear that the big three captive lenders are not the only ones lobbying to keep the dream alive for millions of Americans looking to finance a new or used auto MADE IN AMERICA! Hats off to both Chase and Wells for the continued support of the automotive industry. Lets not leave out some other key players in the industry right now. Wachovia (even though they were bought out by Wells Fargo, it is Wachovia's business moel being used in the industry becuase of it's success rate and low collections). Citiauto, with their renewed business model, they may not be buying up everything, as thery once did, but they are definitley bridging the gap on sevreal fronts (both prime and sub-prime markets) keeping profits proffitable and autos sellable! Capital One, still not the most aggressive but again keeping in the race without any problems in sight. Please, let us not forget our local Community Banks and local Credit Unions for being bold and courageous and taking a chance on select auto dealers, both in the franchise arena as well as the entrepreneaurial spirit of Independant auto dealer! Kuddos to all these guys for not bogging down when the headlines read DISASTER ON THE HORIZON. Way to step up and really reflect the American Spirit!!!

  • R2Dad Posted: 6/24/2010 1:09pm PDT

    Cheap credit was the crack that kept the whole untenable universe of automakers/banks/consumers/credit raters afloat. Without cheap credit, consumers have to be more critical about their shopping decisions, banks have to worry about repayment--everyone does their jobs. With cheap credit, no one cares as much as they should. I think captive credit arms became the profit centers instead of facilitating sales and the quality of american cars became an afterthought to bean counters (to accountants, high quality = low ROI). Until our government liquidates their equity holdings after the GM IPO, no special financing agreements should be allowed. Make GM compete (and win) on product quality FIRST. Then, assuming the company doesn't crater again, cash out uncle sam, THEN allow the crack to flow once again. Otherwise, everyone will forget in 6 months time.

  • LimousineLiberal Posted: 6/24/2010 1:17pm PDT

    as with any debate involving banks, government, bailouts, etc i do wish more balance would be infused to the discussion. richard, great job here doing just that. we all know subprime credit was the straw that blew up a financially driven recession/depression. as always, once diagnosed, a radical swing the other way brings with it it's own problems. hoping GM and others can get things moving with loans that are certainly sub-prime but perhaps not completely unable to meet obligations.

  • fb_100001137592380 avatar Yo Posted: 6/24/2010 1:42pm PDT

    I don't understand, GM sold off control of GMAC, and is simply shopping around now that it can, right?
    Why is this controversial?

  • Des Pondent Posted: 6/24/2010 1:53pm PDT

    Great, just what we need--more shaky loans to people buying more than they can afford. Didn't we just go through this?

  • Eric Berlin Posted: 6/24/2010 4:31pm PDT

    Great piece, and Frank brings up good point about finding balance of making American cars affordable for consumers without busting the financial system in the process.

  • hesky Kutscher Posted: 6/24/2010 11:25pm PDT

    It makes alot more sense to me that financial institutions give out loans and NOT automakers- I think should automakers provide loans for reasons other then financial success they will go deeper into the red

  • Fizz Posted: 6/25/2010 9:59am PDT

    Great move by GM-let those who are experts handle the financing. Car manufacturers should stick to producing cars.

  • Dim Sum Posted: 6/25/2010 11:57am PDT

    It's fine, but you'll always get better financing at a credit union.

  • Frank O Posted: 6/27/2010 1:25am PDT

    Oh no, not again! I hope people keep their senses with buying new cars.