GM is whining because they can’t use sub prime auto loans to help them meet their sales goals. Honda has all of the sub prime lending an auto maker could need or want. So why can’t GM make sub prime loans? Because they lost their lending arm to the financial melt down . You and I own the financing arm of GM (through our federal bail out)…and I don’t know about you, but I don’t WANT the government owned lender to issue more sub prime garbage for the benefit of GM.
Honda, on the other hand owns their own lender (like GM used to before they ran it into the ground). Honda apparently can run their business profitably so that they CAN make sub prime auto loans and somehow not lose their shirt.
Isn’t this just good old fashion free enterprise and American competition? Honda has more capital, they can measure their risk and do the deals. GM doesn’t have the money, so they cannot afford to take the risk.
Let’s stop the whining and get back to business. GM raise capital if you want to have a high risk lending unit.
Sheesh! www.janhillmortgage.com
Tags: Financial Events, The economy
