GMAC LLC, the financing arm of General Motors Corp. gripped by a cash squeeze, posted its fifth straight quarterly loss and said its mortgage unit may not survive.
The third-quarter net loss widened to a record $2.52 billion from $1.6 billion a year earlier, the Detroit-based company said in a statement today. Total net revenue declined 43 percent to $1.72 billion. The Residential Capital home-loan unit lost $1.9 billion during the quarter, while GMAC's auto finance unit lost $294 million.
GMAC's results were crushed by slumps in the housing market, where foreclosures are running at record levels, and in auto sales, which GM labeled the worst since 1945 when it reported October results this week. ResCap has posted losses totaling $4.6 billion so far this year.
Without additional support from GMAC, ``substantial doubt exists regarding ResCap's ability to continue as a going concern,'' GMAC said in today's statement.
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