Christmas For GMAC: Feds Eye Another $2.8b-$5.6b
by
Steven Lang
Published: October 29th, 2009
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No, we’re not talking about genuine job creation or a tax holiday for convicted felons. Well actually, we are. GMAC was given one humdinger of a present last year with $12.8 billion nestled near an open fire. That fire has now consumed nearly all that money. So the question now is what you should do if you were an involuntary investor in this black hole venture. Sue? Protest? Burn an abandoned house or two? Naaahh… just let the politicians shovel the greenery of course. The latest number under the bow is between $2.8 billion and $5.6 billion. Just in time to shop for more lobbying influence. Anyone need a sweetheart deal on their home mortgage? car? 401k plan? Contact your representative stat!
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It would be nothing short of disastrous. Even if you exclude the floorplanning how do you sell and lease vehicles w/o a captive finance arm? You can't offer subsidized leases or financing which would make GM and Chrysler dealers completely uncompetitive with every other manufacturer's dealers. Unfortunately there is no option here to do anything but keep GMAC viable.
more money to run Ally Bank commercials. Guess the government should have read the fine print.
The word about this needs to get out. I have despised GMAC for a few years now. People are getting out and dealers are getting out. There just needs to be more doing it faster. The Subaru dealership I bought my last 2 new cars from was using GMAC. When I bought my second car there they were using Primus. Go figure
In the mid 1980s, I bought a used RX-7 from a Chevrolet dealer. They had the best deal for financing, but it was through a local bank, not GMAC.