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General Motors Sells Credit Card Business For $2.5 Billion

General Motors has offloaded its credit card business to Goldman Sachs Group Inc., according to The Wall Street Journal.

GM credit card issuer Credit One Financial has already agreed to the deal, which is worth $2.5 billion, and is expected to finalize the agreement in the coming weeks. Goldman Sachs allegedly beat British bank Barclays Plc in a bidding war for the consumer card business, though both banks declined to comment on the supposed deal when approached by WSJ. General Motors did not immediately respond to a request for comment and has yet to release an announcement confirming the deal.

Goldman Sachs has not previously had a large consumer banking business, financial journals point out, and has decided to expand into the territory due to volatility in the stock market. It launched an Apple credit card in partnership with the tech giant last year, which was its first foray into consumer banking, and is doubling down on the strategy with this latest acquisition.

GM offers credit cards for retail and fleet customers, along with a separate card for GM employees and their families. The retail card allows users to earn cashback rewards that can be put toward the purchase of a new Chevrolet, Buick, GMC or Cadillac vehicle, or to purchase certified service, GM accessories and other extras. The employee and fleet cards work in a similar manner, though the cashback earnings and the way they can be used differ slightly for each. The automaker also has a separate credit card business for Canadian customers, which is run by the Toronto-based Scotiabank.

It’s not clear why GM has decided to offload its credit card business, however U.S. households are currently cutting back on personal debt due to the COVID-19 pandemic, Reuters reports, which may have had an impact on the decision.

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Sam loves to write and has a passion for auto racing, karting and performance driving of all types.

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Comments

  1. The GM card saved me $2500.00 on my new Corvette. They would offer up to 5% on purchases. Not many cards go thst high.

    Reply
    1. I recently redeemed approx two years of GM credit card earnings to reduce the purchase price of a 2020 GMC Sierra by almost $5k! I really hope they keep this program going. Now building up points towards a C8 ZO6!

      Reply
  2. “It’s not clear why GM has decided to offload its credit card business”

    Hello, “Nikola”?

    It has been said, half of “Tesla’s” success is (as is the “iPhone”) due to the vanity of the name.

    A truck is like a shovel or a hammer, if you’ve ever need one, you gotta have one, will always end up needing one. Technology will change it but it will always be what it is and when it comes to making tools, you have to “hammer” the competition, you “dig”!

    Who buys a wooden handled hammer or shovel these days? anyone?

    You want to make money building tools, do it right and lead the industry!

    Reply
  3. I have one of these cards. What does this mean? It won’t be a GM card anymore? My purchases won’t go toward points off a new car anymore?

    Reply
  4. So, do I have to go and trade in my car to make use of my points now? Or…..

    Reply
  5. What will happen to the points I have?

    Reply
  6. how to buy cbd oil wholesale

    Reply
  7. They sure screwed up the change. Can’t access account for days. Didn’t give out enough information on the swap and it’s a mess. 5 hour wait time on calls to customer service

    Reply
  8. I’ve had a GM Card for many years now but I will be dropping it in the near future. Recently Marcus @ Goldman Sachs has taken over the card. You have to contact them to change some of your information. The problem with this is when you go to submit the changes it goes to a page saying we’re having technical difficulties and you can call this number or use the app. If you use the app the same thing that happens on the website happens on the app. When I’ve called the number they tell you that there is a wait time anywhere from 30min. to 4 hrs. I stayed on the 30 min. wait time call and after more than a hr. no one came to the phone. I read today a guy stayed on the phone for 13 hrs. and when they answered the phone they said they couldn’t help him. This has been going on for two weeks now even though they say the support team is working on it. I sent a payment in through my bank and can’t even contact them to see if they got it. The GM card has been good to me in the past saved me quite a bit of money when I purchased a GM vehicle but this has been to much to make me want to continue with their card.

    Reply
  9. This is the worst credit card rollout ever.

    Reply

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