GM may return to the auto-lending business and buy back GMAC

Sources say that more than three years after selling control of GMAC LLC, General Motors Co. could return to the auto-lending business. These insiders, who are familiar with GM’s plan but decline to be named, say that GM may buy back the GMAC business, start a new finance company or form a partnership with banks and other lenders.

GM’s profit could increase if it has its own finance arm. This would then give its dealers competitive leasing and loan offers. One of the sources also said that CEO Ed Whitacre aims to put up an in-house lender before taking the company public again as early as the fourth quarter of this year.
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uaw_lax - 5/12/2010 4:15:33 PM

0 Boost

When will you stop it with Obama this and Obama that your dumb comments that dont have a thing to do with the topic are tired.

bfghemicuda - 5/13/2010 5:15:34 PM

+1 Boost

Before the Cerberus caper, The auto lending arm of GMAC was in good shape and profitable, . GM sold it to cerberus for much needed cash to keep afloat at the time. The home loan arm was the one that tanked. Now that it is owned by Cerberus, GMAC is the lender for GM and Chrysler. If GM buys back GMAC will it then also be the lender for Chrysler? This would be a first. And the agreement for GMAC to finance Chrysler vehicles was a payback to Cerberus for letting go of its interest in Chrysler. The UAW got is payback also with GM. This is big greedy government at work.

uaw_lax - 5/13/2010 6:34:04 PM

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GM and Chrysler financing under one roof? Not a bad ideal.