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After the recent increases, automakers' finance subsidiaries are now charging an average of about 7percentt.
Automakers tried to raise their finance subsidiaries' rates last winter, but they retreated rather than lose market share to rivals.
Over the past decade, the finance subsidiaries of the Big Three have transferred about $600m a year to their manufacturing arms, says Mr Tadross.
Several other large accounting firms, including Andersen (the firm formerly known as Arthur Andersen), already have corporate finance subsidiaries that are registered broker dealers.
In a further concession, the government is expected to cut the tax rate to just 5.75% on profits made by multinational companies finance subsidiaries in tax havens.
THE boom in leasing that propelled the auto market to sales records shows signs of fizzling out, as auto companies' finance subsidiaries and other lenders confront some discouraging financial facts.
Similar(49)
If the subsidiary is a finance subsidiary, paragraph (b) applies.
(8) A subsidiary is an operating subsidiary if it is not a finance subsidiary.
Instead, the appropriate financial information requirement would depend on whether the subsidiary is a finance subsidiary or an operating subsidiary.
1. Paragraph (d) applies in the same manner whether the issuer is a finance subsidiary or an operating subsidiary.
1. Paragraph (e) applies in the same manner whether the guarantor is a finance subsidiary or an operating subsidiary.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com