GMAC close to getting about $3.5 billion in added aid from the U.S. government

Article by Christian Andrei, on August 26, 2010

According to the Wall Street Journal report, GMAC Financial Services is close to getting about $3.5 billion in added bailout from the US government. As it’s known, the company has already gotten $12.5 billion December 2008. The announcement is expected within days and will coincide with GMAC taking additional steps to absorb losses related to its mortgage operations. 

According to a person familiar with the deal, this measure has been crafted to return the company to profitability in the first quarter of 2010.

The $3.5 billion is actually far less than what was first expected for this round of the financier's bailout. Last November, reports had come in saying the assistance was valued at up to $5.6 billion.

Financing for GMAC is crucial since it provides financing to General Motors and Chrysler dealerships. The Wall Street Journal further stated that the new capital is likely to allow GMAC to avert placing its ailing mortgage unit, Residential Capital LLC, or ResCap, into bankruptcy.

In an e-mail, GMAC spokeswoman Gina Proia said that as earlier stated, GMAC has been reviewing its business and evaluating options to address the challenges at ResCap and the mortgage operations.

Topics: gmac

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen...
by - January 22, 2017
When a car has been in the market for nearly six years, it loses some of its luster and its customers tend to go for the all-new model with a...
by - January 22, 2017
Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries