Giant Motorsports Forms Financing Subsidiary
February 10, 2005
Filed under Uncategorized
Giant Motorsports, Inc. has formed a new wholly owned subsidiary, Giant Motorsports Acceptance Group, Inc., to provide direct financing to purchasers of the company’s motorcycles and other powersports products.
Giant operates two additional wholly owned subsidiaries – retail outlets W.W. Cycles, doing business as Andrews Cycles in Salem, Ohio, and Chicago Cycles in Chicago.
“This is a potentially important business and strategic step that could generate additional new revenues through its own operations, as well as significantly assist in the growth of our unit sales,” said Greg Haehn, President and Chief Operating Officer. “We believe the importance and value of the captive finance business has already been proven by major automotive and powersports manufacturers.
“In our opinion, the establishment of Giant Motorsports Acceptance Group could eventually enable us to retain significant levels of financing business that previously had been diverted to other financing providers.”
Haehn says he anticipates the new venture’s 2005 revenues to exceed $100 million.
“We are currently outsourcing about $22 million on an annual basis in financing for our customers,” he said. “If we execute our strategy effectively we believe we can convert a significant portion to our in-house captive finance arm.”