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Chrysler offering 0% financing on most 2010 models financed through GMAC

As financed through GMAC Financial Services, Chrysler Group customers can opt for 0% financing or up to $4,000 cash back on most 2010 models. These incentives were announced one day after the company reported a 25% sales increase for April, its biggest monthly increase in almost five years. April sales were boosted due to Chrysler's incentives averaging $3,374 per vehicle.

Edmunds said that this figure decreased from $4,383 a year ago. However, Chrysler still holds the largest incentive average in the industry. Chrysler's latest offers vary by brand and model.

Chrysler-brand customers can opt for 0% financing for 60 months, 1.9% for 72 months or a rebate of up to $3,000.

Read the entire article Chrysler offering 0% financing on most 2010 models financed through GMAC

GMAC receives $5.0 billion investment

It was announced today by GMAC Financial Services that it has sold $5.0 billion of GMAC's preferred membership interests and warrants to the U.S. Department of the Treasury as a member of the Troubled Assets Relief Program established under the Emergency Economic Stabilization Act of 2008.

GMAC also made public that GM and an associate of Cerberus Capital Management made a contribution to GMAC the $750 million subordinated participations in the $3.5 billion senior secured credit facility, as modified, between GMAC and Residential Capital, LLC as a trade for new common equity of GMAC.

Additionally, GMAC made the announcement that GM and an associate of Cerberus Capital Management entered into a contract to buy $1.25 billion worth of new common equity.

Read the entire article GMAC receives $5.0 billion investment

Report: GMAC is negotiating another cash infusion

GMAC Financial Services' $12.5 billion in federal aid is apparently not enough as it is negotiating for additional taxpayer funds because it has not raised sufficient capital to endure a deepening recession, according to a statement from the Federal Reserve. Out of the 10 large banks ordered last May to raise capital, GMAC was the only one that didn't meet its goal. 

The Fed said that the GMAC is expected to meet its remaining buffer need by accessing the TARP Automotive Industry Financing Program.

The auto lender is currently in discussions with the U.S. Treasury on the structure of its investment. The U.S. Treasury and Fed ordered the banks to take stress tests last spring in a bid to reassure investors that they would be able to withstand a deepening recession.

Read the entire article Report: GMAC is negotiating another cash infusion

GMAC Financial Services is likely to be taxed

GMAC Financial Services will most likely be asked to pay a fee under a new Obama administration proposal to impose a levy on US banks to recoup bailout money.

General Motors Co. and Chrysler Group are exempted but GMAC will likely be taxed, according to an e-mail from a Treasury Department spokeswoman. 

However, the administration has yet to determine the payment that the banks must make or when the final decision on which institutions to include in its proposal will be made. 

Read the entire article GMAC Financial Services is likely to be taxed

Indicating that GMAC Financial Services has improved its access to capital in the past six months, it was reported this week that it is raising almost $1 billion selling retail auto loans as securities. GMAC has had to rely on cash infusions from the US Treasury Department to stay afloat during the credit crisis.

Treasury invested $17.2 billion and now owns 56% of GMAC. With the completion of the latest transaction, GMAC would have already raised $7.1 billion since September with the sale of securities and bonds.

The sale that occurred this week stands for the first time that GMAC unit Ally Bank has sold securities outside of a government-sponsored program.

Read the entire article GMAC raised $7.1 billion selling retail auto loans as securities

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.

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

According to Treasury Department guidelines announced last week, General Motors Co. and GMAC's second-highest tier of executives are limited to salaries of $500,000 and are prohibited from receiving bonuses unrelated to performance.

Kenneth Feinberg, Treasury's special master for executive compensation, set these limits in order to let executives focus on long-term gains and financial stability rather than short-term growth. Previously, Feinberg had set limits for the top 25 executives at GM, GMAC, Chrysler Group and Chrysler Financial.

The limits that are next to be imposed will apply to the next 75 highest-paid executives. In addition, at least 50 percent of each second-tier executive's total compensation must be held for at least three years.

Read the entire article GM and GMAC’s second-highest tier of executives limited to salaries of $500,000