DETROIT -- General Motors Corp. and Household International on Tuesday announced an expansion of their GM Card to Great Britain.
Starting in January, Household's United Kingdom subsidiary, HFC Bank, will issue cards that let holders apply 5% of charges, up to about $775 a year, toward the purchase of a car or van from GM's affiliate, Vauxhall Motors Ltd.
The GM Card introduced in the United States in September 1992 has proved wildly successfully. To date, nearly 9 million U.S. and Canadian consumers carry the GM Card, and more than 70,000 GM cars and trucks have been sold to card-members who cashed in rebates.
Ronald N. Zebeck, managing director of credit card operations for GM, said the U.K.'s potential from GM Card's point of view lies in an improving economy, a credit cart market comparable to Canada's with some 20 million potential cardholder relationships, and a strong GM automotive affiliate. He noted that GM's no-fee card at 19.9% interest will compete with cards issued by British banks that carry a fee and an average rate of 23.2%.