By Phil LeBeau, CNBC Correspondent
Calling all GM critics! Calling all GM critics!
It's time to once again take a shot at the government owned auto maker. And believe me, they are already firing away at the latest move from GM. Spending $3.5 billion to buy AmeriCredit Corp. ( ACF). It's a move that will give GM a captive finance division so its dealers can have a better shot at securing loans from sub prime auto buyers (40% of GM buyers fall into this group). More importantly, with a captive finance arm, GM will be more attractive for investors when it goes public later this year. So on paper, this deal makes sense. Ahh, but not to the legions of GM critics. To them, it's ridiculous that the company will spend $3.5 billion when it's highly unlikely the Federal Government will recoup all the money it put into GM. In the eyes of these people, GM should not spend any money acquiring other businesses or entities as long as taxpayers (who own 61% of GM) are not made whole. In other words, these people want GM to make the government whole before spending any of the $30 billion in cash the company is holding. These critics baffle me. On one hand, they want GM to make sure Uncle Sam gets all of the $50 billion it put into saving the auto maker. On the other hand, they don't want GM to spend any money buying companies that will make the auto maker more valuable and better positioned to pay back the government. So to these critics I have a simple question: What do you want from GM? If your answer is that you want the company to repay Uncle Sam, then you have to realize this AmeriCredit deal is a good move. Having a captive finance division should help GM grow sales. More importantly, it will make the GM IPO more attractive for Wall Street. The IPO is going to be the best shot the government has at recovering the money it has pumped into GM. Remember, Uncle Sam needs GM shares to do well so it can gradually sell off its stake in the auto maker and recover billions of dollars.
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