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Based on GMAC, I’d say this is NOT a good idea. Once they get greedy and cocky and expand to other banking, all hell breaks loose and the collapse begins.
The financial crisis was caused by car manufacturers and production home builders that opened their own banks/mortgage companies and offered 100% or more loan to value, 0% financing with little or no income verification on their own cars and homes because they couldn’t sell them otherwise.
They quickly sold those junk loans (subprime loans) as collateralized debt obligations to unsuspecting investors who lost their investments when the market crashed.
These auto manufacturers and home builders should NEVER be allowed to finance their own inventory with a FDIC or taxpayer backstop.
Not a fan. Not much upside, lots and lots of downside (for us tax payers).