In its first major announcement since Barclays US took over the business, General Motors is relaunching its rewards credit cards with changes to how points are earned and redeemed for automotive purchases. Barclays has overhauled the program, consolidating several branded rewards programs into a single, streamlined offering.
Instead of Cadillac Rewards, Chevy Rewards, Buick Rewards, and GMC Rewards, all benefits will now be offered through the My Rewards program. Ralph Darmo, Head of GM Rewards, told the Detroit Free Press that the points can now be used across all GM brands for the purchase of a new or used GM vehicle, effective immediately.
While the program also includes other enhanced benefits, this marks an important first step toward a stronger, more unified program.
“We expected card enhancements with the new GM-Barclays partnership in a move to acquire customers,” said Ben Danner, Senior Analyst of Credit and Commercial at Javelin Strategy & Research. “Integrating the loyalty offering into one single program simplifies a once-complicated structure. I can’t imagine the confusion of trying to buy a Cadillac and the salesperson saying they aren’t sure if the GM card points will work.”
Upping the Intro Offer
To make a splash, the new program greatly expands the points consumers can earn. The card offers up to 10 times the points on eligible GM purchases, while all other purchases qualify for three times the points. Based on Javelin Card Bench findings, Danner noted that the enhancement increased the introductory offer from 15,000 to 30,000 points.
Later this year, GM and Barclays will also launch the GM Business Mastercard. It will again offer a higher earn rate on GM purchases, along with expanded redemption options.
A Long-Simmering Acquisition
Barclays took over the General Motors line of credit cards in October, assuming control of the card business from Goldman Sachs. Goldman had managed the GM credit card program since 2022 but has since decided to scale back its consumer lending operations.
Barclays had bid on the GM credit card program in 2020, but ultimately lost to Goldman, which reportedly paid $2.5 billion to acquire the business from Capital One.
Nevertheless, the GM rewards program has delivered measurable value for the automaker. On average, rewards members purchase vehicles with 5% higher retail prices than non-members, visit GM dealerships twice as often, and typically return to buy another GM vehicle nearly three years sooner.
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