New GM management, same GM games:
General Motors of Canada President Kevin Williams is warning that subprime loans could doom the auto industry just as it did the housing industry in 2007.
Williams told the editorial board of Canada’s Globe and Mail newspaper on Monday that record Canadian auto sales could be attributed to cheap credit loans.
“The real question is, are you going to run the business the way you ran it in the past in order to drive market share exclusively. The answer is that’s not our intent because it [led to] a failed company,” Williams said.
Using subprime loans and easy credit to move cars off the lot may not be GM Canada’s goal, but its parent company, bailed-out, Detroit-based General Motors, has been moving in that direction, as the Washington Free Beacon reported in February. Nearly 90 percent of loans issued by GM Financial were subprime.
As previous discussed, GM has also been leaning on “channel stuffing” to make their sales look better than they actually are.
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