GM and Barclays Forge Exclusive Credit Card Rewards Deal

General Motors (GM), a titan in the automotive industry, has recently announced a long-term partnership with Barclays US Consumer Bank. This move sees Barclays become the exclusive issuer of the GM Rewards Mastercard and GM Business Mastercard in the United States, commencing next summer. This collaboration has strategic implications for both entities as they leverage their considerable clout to benefit their customer bases.

GM boasts the most extensive customer base among U.S. automakers and has consistently led the industry in customer loyalty for an impressive nine years in a row. This loyalty has been instrumental in establishing GM's credit card portfolio as one of the nation's longest-standing co-branded credit card programs. The integration of a financial instrument like the one offered through Barclays can further solidify GM's relationship with its customers by adding more value to their patronage.

With the GM Rewards cards, cardholders are given an opportunity to earn and redeem points on a range of purchases and activities. These include buying new Chevrolet, Cadillac, Buick, and GMC vehicles, servicing said vehicles, accessorising them to their preference, and notably, investing in GM’s new lineup of electric vehicles (EVs). It's a comprehensive rewards system that seeks to encompass all aspects of vehicle ownership and maintenance.

GM’s executive vice president and CFO, Paul Jacobson, expresses optimism about the future of the GM Rewards Mastercard. The goal is to make it a front runner in the consumers' wallets by offering not only high-value rewards but also unique experiences that resonate strongly with their lifestyle and aspirations. The new partnership with Barclays is set to amplify this vision by offering experiences that only GM can provide, thus setting the stage for an enhanced customer journey.

The tangible takeovers in this partnership involve Barclays acquiring the card program’s receivables from the current issuer next year. This transition signifies the Bank's confidence in the program and its commitment to the mutual growth of both institutions.

GM's journey into electrification is a focal point in these endeavours, aiming to boost both sales and profitability within its EV business. Strategies include cost reduction in battery manufacture, scale expansion, and the introduction of novel models. GM has already set the wheels in motion to gain significant momentum within the EV market. The enhanced rewards program is expected to further incentivize and solidify consumer relationships, especially among the environmentally conscious and tech-savvy.

This robust partnership demonstrates an intersection of automotive prowess and financial service excellence. For the loyal GM customer, the future holds the promise of a journey replete with rewards, experience, and innovation, all tied together by the convenience of a Mastercard.