News

US offers GMAC bailout

Advert

Time 11:56 am, December 30, 2008

THE US government has said it will offer a bailout to GM’s car loan arm GMAC to the tune of £4.1bn.

The BBC has reported that the finance arm – co-owned by Chrysler and GM – has been offered the cash by the US Treasury to help it fund would-be car buyers’ purchases.

The move follows the $17bn dollar bail-out of GM, Chrysler and Ford earlier this month by the White House.


The Beeb says GMAC recently gained approval to become a bank holding company which gave it access to emergency government funds offered to other financial institutions.

The rescue package will see the US Treasury buy $5bn in shares in GMAC, and will increase a loan to GM by an extra $1bn.

GMAC is the main source of finance for car buyers at GM dealerships. The finance arm said it intended to act quickly to resume automotive lending to a broader spectrum of customers.


CASH AGREED FOR BIG THREE

TATA CASH AID FOR JAGUAR LAND ROVER

Car Dealer Magazine's avatar

Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.



More stories...

Advert
Server 108