General Motors wants to risk again? by Barbora Misakova

People say we are living too quickly these days like we forgot how to enjoy life. We rush to school, to work, we hurry with all our activities just to come home and do things also there in hurry. But there are also some individuals whose are quicker than quick: businessmen. General Motors, one of the biggest car companies in America wants more control. General Motor’s top executive Mark Reuss wants to gain more control over company’s lending just to speed up car sales and GM’s value. According Reuss, subprime buyers could be the key to success. They make up a significant portion of the car buying market – about 16 percent of all new vehicle loans fro! m fourth quarter of 2009 were to customers with below prime credit. While Reuss is ready to risk it, automaker’s mail lender, Ally Financial Inc., has little appetite for risky loans especially as it had own experience with failing mortgage lending business. As said Kirk Ludtke, senior vice president of CRT Capital Group in Stamford, as General Motors is getting closer to the stock offering, “there is a real sense of urgency on General Motor’s part to maximize its sales.” Reuss points at Honda Motor Co. which gets 20 percent of its sales and leases from subprime buyers. GM gets only 1 percent! Reuss is sure it would surely help to his sales and the company’s sales in North America. But isn’t it too quick anyway? Isn’t this reminding you the same business activities which brought us to the recession? Sure, where is no risk, there is no profit, but personally, I prefer low-speed roads.

related story (sgx17304): ! http://news.yahoo.com/s/ap/20100516/ap_on_bi_ge/us_gm_subpri...

by Barbora Misakova for Cantell TV (http://cantell.tv)

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