GM wants to sell more cars and they believe that a shortage of sub-prime auto lending is holding them back. So even if you have bad credit, GM still wants to sell you a car.
The problem is that their main lender, Ally Financial, Inc., does not want to cooperate, especially since they have spent the last couple of years trying to recover from their own financial mess caused by a failing sub-prime mortgage lending business. While traditionally subprime auto lenders have fared better than subprime mortgage lenders, lenders are still wary of the subprime market.
However, in order to compete with the foreign carmakers, it may be crucial for GM to be able to finance more subprime customers. Honda Motor Company gets 20 percent of its sales and leases from subprime buyers while GM is only getting 1 percent right now because it can?t access the money to loan to those customers.
Read more about it at the Associated Press.