GMAC could benefit from bailout extension

[rickaren]

GMAC could benefit from bailout extension

Posted on Thursday, December 10th, 2009 at 2:28 PM EST.(Employee News)

The Obama administration’s decision to extend the life of the $700 billion Wall Street and auto bailout fund until October means auto finance company GMAC has more time to negotiate for additional aid, The Detroit News reported.

Detroit-based GMAC Inc. has received $13.5 billion in government support and has been in talks with the White House about an additional infusion of up to $5.6 billion, the paper said. Extending the life of the so-called Troubled Asset Relief Program past its scheduled Dec. 31 expiration, to Oct. 3, 2010, means GMAC may get more money, even if it can’t wrap up a deal with the government by the end of the year, the News said.

The money would be used to help make additional vehicle loans, which General Motors Co. and Chrysler Group LLC say is crucial in their comeback effort, the paper said. Both automakers offer consumer financing through GMAC, and their dealers borrow money from GMAC to buy vehicles for their showrooms, the story said. (The Detroit News)