tagged w/ GMAC
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GMAC, the troubled consumer finance company, is seeking billions of dollars in additional federal aid, a move that would be its third taxpayer bailout and could give the government a majority stake in the company, according to people briefed on the situation.GMAC, the troubled consumer finance company, is seeking billions of dollars in... more
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The White House is calling for pay cuts for top ranking executives at the companies that received bailout funds (AIG, GM, Chrysler, Chrysler Financial, Bank of America, Citigroup, and GMAC). The administration wants the top 25 highest paid executives of these companies to take a 90% pay cut from last year. But the administration isn't stopping there. It also wants to reduce the amount of perks and bonuses executives can receive.
Does this mean that business executives will start to live like regular people?The White House is calling for pay cuts for top ranking executives at the companies... more
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As part of the shake-up at General Motors, GMAC is now called Ally Bank. Naturally, scam emails are going out asking people to update their old GMAC account record through Ally Bank. DO NOT FOLLOW THE LINK or OPEN THE ATTACHMENT. You will be infected.As part of the shake-up at General Motors, GMAC is now called Ally Bank. Naturally,... more
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Senior executives at General Motors are meeting to discuss proceedings for a widely expected filing for bankruptcy protection.
They are likely to firm up the details of how to completely restructure what was once the world's largest car company, under judicial supervision.
GM's sales have been hit hard by the financial crisis and the firm has received $20bn (£12bn) in state aid.
President Barack Obama will give full details of the restructuring on Monday.
The Obama administration has given GM a 1 June deadline to submit a viable revival plan or file for bankruptcy.
A Chapter 11 bankruptcy filing by GM would rank as the third largest bankruptcy in US history following Lehman Brothers' collapse and the failure of telecoms giant WorldCom.
European deal
GM's European arm will likely be spared bankruptcy following a proposed deal by Canadian car parts maker Magna International to buy GM Europe's Vauxhall and Opel brands.
However, unions fear that jobs may be lost at Vauxhall plants in Luton and Ellesmere Port, which employ 5,500 people.
UK Business Secretary Lord Mandelson said he had received further assurance from GM Europe that Vauxhall production would remain in the UK.
Jobs may also go in Belgium, Poland and Spain.
GM, once the largest company in the world, has been losing market share since the early 1980s.
It has been driven to bankruptcy because of high production costs and by the collapse in credit markets and consumer spending. It made losses of $30bn last year.
GM was also slow to move away from producing gas-guzzling SUVs when consumers were looking for more fuel-efficient vehicles.
Toyota sold more vehicles than GM in 2008, putting an end to the American company's 77-year reign as the world's biggest carmaker.Senior executives at General Motors are meeting to discuss proceedings for a widely... more
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After the auto industry had to fight tooth and nail to secure the $17 billion it needed to save itself from collapse, the federal government has kindly kicked in another $6 billion. The beneficiary: GMAC, the auto financing company that provides financing for most GM dealers and many of its customers. GMAC has struggled in recent months to borrow the money it needs to make loans and last week the Fed approved the company's request to become a bank holding company. The change in structure opened it up to new sources of funding, like the billions it's receiving from the $700 billion of TARP funds, but also made it subject to additional regulations, including a requirement to convert 75 percent of its $38 billion in debt into stock . As part of the $6 billion infusion, the Treasury will invest $5 billion, on which it will receive an 8 percent dividend, and loan $1 billion to GM for it to invest in GMAC. GM has a 49 percent ownership of GMAC.After the auto industry had to fight tooth and nail to secure the $17 billion it... more
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The U.S. Treasury committed $6 billion to support GMAC LLC, the financing arm of General Motors Corp., the latest step in the government’s widening effort to keep the largest U.S. automaker out of bankruptcy.
Treasury said it will purchase a $5 billion stake in GMAC, and lend $1 billion to GM so the automaker can participate in a rights offering at GMAC to support the lender’s reorganization as a bank holding company. The loan is in addition to $13.4 billion the Treasury agreed earlier this month to lend to GM and Chrysler LLC.The U.S. Treasury committed $6 billion to support GMAC LLC, the financing arm of... more
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BuddyP
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added this
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3 years ago
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Leasing is down industry-wide by about 50% from 2007 levels, but General Motors' captive credit arm took an even bigger bite out of its vehicle leasing in September. GMAC leased only 2% of all GM products in September, and the decision to do so had everything to do with the recent events of the financial markets. While leasing was down GM-wide in September, GMAC and Chevrolet were hit the hardest. The General's two volume brands accrued only .6% and .7% of its sales through leasing, compared to 11.2% and 13.6% respectively last year. Leasing is virtually non-existent for vehicles with low residuals, and Cadillac, which typically leases over 40% of its vehicles, leased at an 8.4% clip last month.
Nobody on Wall St. is purchasing securities right now, giving GMAC very little money to offer leases to its customers. A controlling interest in GMAC was purchased by Cerberus well before the private equity firm took control of Chrysler. Chrysler stopped leasing all together on August 1 in response to the huge losses it took on returned leases of SUVs and trucks. Both GM and GMAC say the break from leasing is only temporary, but with the financial markets still in flux, don't expect this trend to reverse itself any time soon.Leasing is down industry-wide by about 50% from 2007 levels, but General Motors'... more
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