General Motors may be in the process of acquiring AmeriCredit as a step toward securing a captive in-house financing operation, but the company says it will continue to nurture its relationship with Ally. As you may recall, Ally (formerly GMAC) has financ
Chrysler Financial hasn't been doing a whole lot since the domestic automotive implosion of aught-nine. When the Obama Administration's Automotive Task Force found that the lender didn't have the wherewithal to continue making large loans to dealers, GMAC was forced to take over lending duties f
GMAC Insurance just completed its annual survey of driver knowledge, and the results don't look good. Of those questioned, New York drivers proved to know the least about the rules of the road, with 20 percent failing the written exam and 85 percent not knowing basic information like wha
How many bad drivers can you spot every day on your drive to work? Five? Ten? All of them? We feel your pain, and apparently the alarming truth is that one-in-five motorists – which, for those interesting in the gory details, equals roughly 38 million Americans – are unfit to drive on our nation's highways.
"The panel is deeply concerned that Treasury has not required GMAC to lay out a clear path to viability or a strategy for fully repaying taxpayers." This, according to a Congressional Oversight Panel that was created as a watchdog for the U.S. Treasury's Troubled Asset Relief Program (TARP) funds. The fix? Potentially breaking GMAC up into units and merging its auto lending business back into General Motors.
According to The Detroit Free Press, the U.S. Treasury has dumped another $7.5 billion into GMAC's coffers just two weeks after the bank was told by federal regulators that it needed billions in order to survive. In another government-backed boost, GMAC is now allowed to issue FDIC-insured debt. Both actions are reportedly designed to help restore faith in the damaged U.S. credit markets.
The recent string of government bailouts has placed a 50,000-watt spotlight on executive pay. Executives from Detroit automakers have already cut their pay to show the public and their own workforces that they're sacrificing for the greater good. There hasn't been much focus, however, on finance arm executives, though there likely will be after Automotive News learned that GMAC CEO Alvaro de Molina was paid $11.6 million in 2008. Molina's 2008 windfall comes one year after he pulled in
That Chrysler continues to struggle isn't exactly news. As a whole, the auto industry is tanking and cars just aren't moving off dealer lots. Chrysler initially responded by offering buyouts to its entire workforce, and 25% off all its salaried workers took the company up on the offer. Earlier this week, we learned that the ailing Auburn Hills empire will get cozy with Italian automaker Fiat. What
After announcing earlier this week that GMAC would only finance customers who hold credit scores higher than 700, General Motors has decided it would be prudent to reassure consumers that they are still in the business of securing loans and selling vehicles. Starting Friday, GM will launch a "Financing That Fits" campaign on a national level. Through advertising on te
If you're in the market for a new car, you'd better get your credit score in order first. Auto lending units are looking for top tier customers right now, and GM's captive credit arm is going so far as to mandate a FICO rating of 700 or higher. GMAC is requiring this measure in response to the instability in the global capital and credit markets. The move is likely to cost GM some sales, but according to credit information services company Experian, 74.3% of all auto loans went to consumers with
GM's finance arm, General Motors Acceptance Corp., appears to be inching closer to selling its first bonds in two years. Not since 2004 has GM been in a strong enough financial position to make such an offer. GMAC's sale to a group of buyout firms may be completed by the end of the year, which would allow such a sale to proceed. The significance of such a bond issue is that it would signal increasing investor confidence in GMAC, which slipped to non- investment grade in May 2005.
After the photo ops and cheery press releases that marked GM's announcement on Monday that it will sell 51-percent of its GMAC finance subsidiary to an investment consortium for $14 billion, cooler heads in the investment community are putting a bit of a damper on the celebrations.
According to newswire Reuters, General Motors is in discussions with an investor group to sell a 51-percent stake in GMAC financial. The Cerberus Capital Management-led coalition is expected to be worth around $11 billion, with a &
In an effort to firm up its finanaces, General Motors announced today that it has sold a majority interest in GMAC Commercial Holdings Corp. from the company's financing division, GMAC (General Motors Acceptance Corp.).
GMAC, General Motors' financing arm, evidently has some suitors seeking a majority stake in the unit. Kohlberg Kravis Roberts & Co. is the front-runner in dollars -- that's $12.5 to $13 billion -- but the terms of the agreement are that it's non-binding, and the investment group can back out if it chooses. That leaves Cerberus Capital Management LP in a better position, even though it offered up less money. Reg