General Motor’s “biggest China manufacturing joint venture said it would offer interest-free car loans, as the company maneuvers for advantage in the increasingly competitive China market and tries to encourage people in this cash-centered economy to borrow to buy cars,” the Wall Street Journal reports.
Even worse: other dealers are apparently offering better deals. Negative amortization. Debt that grows its own equity. Leverage the buys itself out.
GM-China Joint Venture Offers No-Interest Loans [Wall Street Journal]

Comments (3)

  1. Posted by Bulging Bracket | August 22, 2007 at 11:46 AM

    Neg-am or negative interest? In other words: US home crisis or Japanese lending crisis of the late 90s/early 00s?

  2. Posted by Commies | August 22, 2007 at 12:39 PM

    These clowns are fighting for the business of trusting mainland Chinese to pay them back? And Beijing will enforce this — even if millions of people get themselves in trouble? So the world’s gone all hugs-and-kisses? What? Are we going to sing Cumbaya next? Fuck ME.
    Somebody must have dropped a shitload of E into Lutz’s drink.

  3. Posted by Anonymous | August 22, 2007 at 1:07 PM

    Maggie Brennan. That chick is like the hills north of L.A. in the summer time. Smoking hot.

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