GM Financial to add up to 700 jobs in Texas
General Motors Co.’s captive finance arm, General Motors Financial Company Inc., said Thursday it plans to build a new financial servicing center in San Antonio, Texas, that will house up to 700 employees, mostly new hires.
On Thursday, the San Antonio City Council, as recommended by the city’s economic development department, approved an incentive package for GM Financial’s AmeriCredit Financial Services Inc. subprime lending unit. It includes establishing a reinvestment zone status and giving the company a 50 percent tax abatement for six years. The Bexar County Commissioners Court also is reviewing an incentive package, and GM expects the state of Texas to approve an incentive package as well. The about 100,000-square-foot facility would add 490 full-time jobs within five years, according to the city’s Mayor Ivy R. Taylor.
“As GM Financial continues to grow to support General Motors, we have a strategic focus on providing best-in-class service to our customers and dealers. This additional facility will help us do that by expanding our workforce and service capacity in a strong and vibrant employment market,” GM Financial CEO Dan Berce said in a statement.
GM is counting on growing GM Financial and revenue. The company said in October it expects GM Financial’s adjusted earnings before taxes to more than double by 2018, from $800 million in 2014.
GM Financial, based in Fort Worth, Texas, chose the location based on the area’s strong workforce, its time zone for servicing customers across the United States and incentives offered including $2.5 million from the Texas Enterprise Fund. Construction on the $24.5 million building is slated to begin early next year, with hopes to open in the first quarter of 2017.
“Texas is proud that GM Financial has chosen San Antonio as the home of its next financial servicing center,” said Texas Gov. Greg Abbott said in a statement. “Thanks to our low-tax, low-regulation environment, GM Financial will be creating nearly 500 jobs and investing tens of millions of dollars in the Texas economy.”
GM Financial’s incentive with the city requires the company pay its employees at least $11.66 an hour and after one year, 70 percent must earn at least $14.96 an hour. They also must hire at least one quarter of employees locally.
GM Financial has about 6,700 employees in the U.S. and Canada. It operates in 20 countries and provides auto financing to about 16,000 dealers globally. GM Financial was established in fall 2010 when GM acquired AmeriCredit Co.