Marketplace Your car company also wants to be your bank
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Jan 23, 2026 Justin Ho, a Marketplace reporter covering industrial banks and automakers' banking plans, and David Gura, a Bloomberg journalist on global economics, discuss why GM and Ford gained FDIC approval to become banks. They explore how this move could reshape auto financing and competition. They also touch on Davos, global economic uncertainty, and what shifting consumer and executive signals mean for markets.
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Automakers Becoming Banks
- Ford and GM got FDIC approval to form industrial banks that can take deposits and make loans.
- Owning banks lets automakers lower funding costs and offer more competitive auto financing without cutting sticker prices.
FDIC Insurance Lowers Funding Costs
- Industrial banks are eligible for FDIC insurance, which reduces how much interest they must pay depositors.
- Lower funding costs let owners offer cheaper loans and more competitive lending rates.
Financing Eases High Sticker Prices
- Rising input costs and tariffs have pushed sticker prices up, skewing new-car buyers toward wealthier customers.
- Automakers prefer to ease buyers' costs via financing offers rather than reduce vehicle prices.
