GMAC to focus on auto loans

[rickaren]

GMAC to focus on auto loans

Posted on Wednesday, January 6th, 2010 at 11:29 AM EST.(Employee News)

GMAC Financial Services plans to emphasize automotive loans going forward and is prepared to sell off large chunks of its real-estate business, the Oakland Press reported.

Michael Carpenter, GMAC’s new chief executive officer, said Tuesday that the company expects to announce a $5 billion loss for the fourth quarter, the Press said. Last week, the U.S. Treasury announced it was sinking nearly $3.8 billion in GMAC to shore up its capital reserves, the paper said.

Carpenter said GMAC goal is to focus on the opportunities in its core automotive services business, the Press reported.

Traditionally, GMAC has been linked to the automobile business since it provides financing to both car dealers and consumers and is vital to both General Motors Corp. and Chrysler Group LLC, the paper said. However, GMAC’s most pressing problems stem from the real estate portfolio that was assembled during the past decade, the paper said.

“A renewed GMAC is crucial to business and public sector efforts to bolster the U.S. auto industry,” said Carpenter as quoted by the paper. (Oakland Press)