GM Attempting to Increase Auto Financing Availability?

In a move to bolster sales in a rough economy, GM is in talks with JP Morgan Chase and Wells Fargo Bank to offer more auto loans to various customers at United States dealerships. Rival automakers like Ford and Chrysler who sell Used Dodges and Ford Incentives also hope to increase their sales with more consumer financing options.

With the current state of the economy and tight regulations on consumer financing, dealerships have been complaining to GM about the problems encountered when trying to get sub-prime customers financing for car loans.

The major problem with GM's financing is that they sold off their finance division, Ally Financial Inc., also formerly known as GMAC. The move left GM's financing options limited as GM is now the only major automaker in the United States without its own finance company. Both Ford and Chrysler have their own captive auto financing companies

GM spokesman Tom Wilkinson said. "Access to financing is an important part of the vehicle sales process. We believe the auto financing business will continue to evolve and we'll continue to assess our overall needs." Recently, GM has been looking at any available options for another captive auto financing company as well.

GM is continuing to attempt to increase its domestic market share which was at 48 percent in 1960 and is now around 19 percent. A consumer financing option for sub-prime loans could help GM compete with other automakers in the domestic market. Both J.P. Morgan and Wells Fargo were two of the top auto financing companies in the nation for the first quarter of 2010.

GM hopes that either Wells Fargo or J.P. Morgan will allow them some more sub-prime financing or leasing loan options. GM is also offering an IPO of the "New GM" which was created in 2009 after GM filed for bankruptcy.