The New York investment firm will be the issuing bank for the Detroit automaker's credit-card programs, with the start of the program targeted for September. Mastercard (MA) - Get Mastercard Incorporated Class A Report will remain the network for the cards.
“We chose to partner with Goldman Sachs because of their proven ability to innovate,” Chuck Thomson, GM's general manager of retail sales and marketing support, said in a statement.
Terms of the multiyear agreement weren't disclosed.
GM launched its first consumer card in 1992. Since then customers have redeemed earnings toward the purchase of new Chevrolet, Buick, GMC and Cadillac vehicles.
Omer Ismail, Goldman Sachs's global head of consumer business, said the firm's "focus remains on delivering a simple and transparent experience that helps customers manage their spending and borrowing needs better.”
Goldman Sachs has said it hopes to expand its portfolio of consumer loans to $20 billion in the coming years, Bloomberg reported.
As part of those efforts, it’s debuted a credit card with Apple (AAPL) - Get Apple Inc. Report and has begun financing vacation purchases with JetBlue Airways (JBLU) - Get JetBlue Airways Corporation Report.
General Motors has been seeking a cheaper way to fund its auto-loan business. Last month, the carmaker’s finance arm formally submitted its application to the Federal Deposit Insurance Corp. and Utah’s finance regulator to form a so-called industrial loan company
Goldman Sachs shares at last check were down 2.8% at $299.33, while GM was off 2.1% at $50.44. Shares of Mastercard, the Purchase, N.Y., credit-card giant, were off 0.6% at $325.03.