By on October 29, 2009

Time to wake up... (Courtesy:themoviedb.org)

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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7 Comments on “Christmas For GMAC: Feds Eye Another $2.8b-$5.6b...”


  • avatar
    mtymsi

    If GMAC needs additional bailout money there’s really no choice but to give it to them since they are the captive lender for both GM and Chrysler dealers. There really is no choice in the matter as obviously GM and Chrysler dealers can’t do sales/leasing business or floorplanning w/o a captive finance arm. This is no doubt a lingering after effect of the subprime crisis. Cerberus as the majority owner of GMAC once again will be the beneficiary of federal funds.

  • avatar

    As much as I love sharing my Chrysler 300 with my girl, CHRYSLER NEEDS TO DIE.

    I don’t see them ever being competitive.

    The one thing they did right however, was making spacious cars for huge guys and gals like myself. Everyone I know with a 300, Sebring or Pacifica LOVES IT and doesn’t care about interior downsides and cheapness.

    In fact, cheap interiors can be a blessing if you’ve got babies who spit up alot or children who eat in the car. Not to mention that the Chrysler’s got good crash test results.

    As for GM, I think Buick, Cadillac and Chevy can be competitive but they all need to make sure their base cars have plenty of power. Simply making the Lacrosse have a base engine under 270 HP isn’t good planning.

  • avatar
    segfault

    Back when the subprime crisis began, and dealers were getting their floorplans pulled by GMAC, a lot of dealers quit using them for financing (customer and floorplan both). So I’m not certain how bad it would be for the dealers if GMAC went under.

  • avatar
    mtymsi

    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.

  • avatar
    focal

    more money to run Ally Bank commercials. Guess the government should have read the fine print.

  • avatar
    mitchim

    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

  • avatar
    Kendahl

    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.

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