Thursday, Jun. 15, 2006, 08:00 PM UPDATED 11:59 AMBy Nick Zulovich
FORT WORTH, Texas -- AmeriCredit announced it has funded its first Canadian auto loan and is working to re-establish itself as a competitor in the Canadian auto-lending market.
In order to renew its lending business in the country, AmeriCredit said it established a new office for AmeriCredit Financial Services of Canada in Mississuaga, Ontario.
The company's underwriting team is based at this location, while its sales representatives are located in different areas to serve dealers throughout the country, according to company executives.
AmeriCredit is "thrilled" to be competing in the Canadian market again, said Howard Cobham, AmeriCredit's senior vice president of Dealer Services in Canada.
"The culmination of months of planning and development has resulted in exactly what we'd hoped for AmeriCredit has received an unprecedented reception from Canadian auto dealers and is certain it can provide a much-needed lending resource for customers in Canada," Cobham explained.
Resuming lending in Canada is an important part of the company's plan to grow new loan originations, Cobham continued. By July 1, he said the company plans to expand its Canadian lending initiative throughout Ontario into Alberta, British Columbia; Manitoba, Saskatchewan; and the Atlantic region. AmeriCredit also said its developing plans to enter the Quebec market at a later date.
Prior to leaving the Canadian market due to a company restructure, AmeriCredit originated loans from 1998 to 2003. Despite leaving the market, company executives said they continued to operate a "successful" collection, including more than 400 team members, in Peterborough, Ontario.