Law and Rights
When sales get tough, the Big 3 throw money at it. The magic mantra seems to be "rebate." Whether it works or not is debatable.
GMAC has been a cash cow for GM for decades, sometimes outperforming any other arm in the GM octopus, but it's in big trouble according to Reuters newswire reports.
Seems the predatory lending and mortgage mess has seeped into the wonderful world of auto financing. A year ago GMAC turned in a whopping $305 million loss, nearly one third of a billion (with a big "B") dollar loss. Well, things got worse as time went by.
Now, GMAC's loss has jumped up to $589 million. Not a small chunk of change, folks. Somebody better get out the bandaids and stop the bleeding or they'll end up looking like Chrysler.
Much of the blame is being heaped on the huge mortgage division losses coming out of Residential Capital, now running 6 quarters of losses in a row. Seems like even they were trying to get in on the mortgage subprime mess to see just how quickly they could lose money.
GM's money mess is one of the reasons that GM sold off 51% of GMAC to private quity firm Cerberus Capital back in 2006, but apparently it was on a downhill slide way back then. We'd hate to think the smart guys at Cerberus were the ones who took that dive into the subprime disaster.
So how bad can it get? Well, we'll soon see. There's $17 billion of debt coming due this year and it'll probably shake GMAC up. Still GMAC has $18.6 billion of cash and claimed liquid assets so one would think that would look pretty healthy. Problem is, that number is down from $22.7 billion just a few months ago.
A $4 billion loss in just 3 months is kinda hard to make up no matter how long you take at it.
Could rebates be coming on the metal? Maybe they ought to be thinking about rebates on the mortgages too?
Meanwhile, if you've got a lemon GM car or truck, you might want to be thinking of trading it in on a Ford. At least they made a profit lately. If you can't or don't want to trade it it, email or call us 1-888-331-6422 Toll Free and we'll help you make GM take it back and give you back your money, for free. That's what we do. Everyday.
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- Gm Hurting
Good grief. General Motors is looking for a buyer for its headquarters building in Detroit. How bad is it getting? GM's spokesman Tom Wilkenson said "We have been looking for options to monetize the asset" which is code for sell it, mortgage it or...
- Dodge Nitro Blowing Up?
You have to wonder why Chrysler makes so many models that compete with each other, instead of with other brands, and just how long can that kind of marketing survive? Take the Dodge Nitro. It competes with the Jeep Liberty. Then there's the Chrysler...
- "we'll Pay You To Buy Chrysler"
Apparently parent company DaimlerChrysler AG (DC) is so anxious to dump Chrysler (CC) that it has agreed to pay the buyer $1.55 billion to take over the ailing American auto giant. Last week we thought the Russians were coming. Now, we find out it's...
- Gm Tightens Its Belt
GM is reported to have lost over 8 and a half billion dollars last year. That's "b" with a capital "B", to say the least. Advertising budgets ($1.3 Billion for US ads alone) and health care ($1.9 Billion for prescription drugs) and pension costs ($17...
- Gm Recalls Even More Vehicles
Well, Gm must be out to prove that they can recall more cars in 30 days than anyone ever has. Last month it was 2 million in a series of massive safety recalls that covered virtually all 2003 - 2005 SUV's and crew cab trucks. You can read more details...
Law and Rights
Get Ready for More Rebates ?
When sales get tough, the Big 3 throw money at it. The magic mantra seems to be "rebate." Whether it works or not is debatable.
GMAC has been a cash cow for GM for decades, sometimes outperforming any other arm in the GM octopus, but it's in big trouble according to Reuters newswire reports.
Seems the predatory lending and mortgage mess has seeped into the wonderful world of auto financing. A year ago GMAC turned in a whopping $305 million loss, nearly one third of a billion (with a big "B") dollar loss. Well, things got worse as time went by.
Now, GMAC's loss has jumped up to $589 million. Not a small chunk of change, folks. Somebody better get out the bandaids and stop the bleeding or they'll end up looking like Chrysler.
Much of the blame is being heaped on the huge mortgage division losses coming out of Residential Capital, now running 6 quarters of losses in a row. Seems like even they were trying to get in on the mortgage subprime mess to see just how quickly they could lose money.
GM's money mess is one of the reasons that GM sold off 51% of GMAC to private quity firm Cerberus Capital back in 2006, but apparently it was on a downhill slide way back then. We'd hate to think the smart guys at Cerberus were the ones who took that dive into the subprime disaster.
So how bad can it get? Well, we'll soon see. There's $17 billion of debt coming due this year and it'll probably shake GMAC up. Still GMAC has $18.6 billion of cash and claimed liquid assets so one would think that would look pretty healthy. Problem is, that number is down from $22.7 billion just a few months ago.
A $4 billion loss in just 3 months is kinda hard to make up no matter how long you take at it.
Could rebates be coming on the metal? Maybe they ought to be thinking about rebates on the mortgages too?
Meanwhile, if you've got a lemon GM car or truck, you might want to be thinking of trading it in on a Ford. At least they made a profit lately. If you can't or don't want to trade it it, email or call us 1-888-331-6422 Toll Free and we'll help you make GM take it back and give you back your money, for free. That's what we do. Everyday.
Burdge Law Office
www. New Car Lemon Law .com
Helping Consumers Get Rid of Lemons Since 1978.
Click here to see what your state's lemon law says.
www. New Car Lemon Law .com
Helping Consumers Get Rid of Lemons Since 1978.
Click here to see what your state's lemon law says.
Subscribe in a reader- Gm Hurting
Good grief. General Motors is looking for a buyer for its headquarters building in Detroit. How bad is it getting? GM's spokesman Tom Wilkenson said "We have been looking for options to monetize the asset" which is code for sell it, mortgage it or...
- Dodge Nitro Blowing Up?
You have to wonder why Chrysler makes so many models that compete with each other, instead of with other brands, and just how long can that kind of marketing survive? Take the Dodge Nitro. It competes with the Jeep Liberty. Then there's the Chrysler...
- "we'll Pay You To Buy Chrysler"
Apparently parent company DaimlerChrysler AG (DC) is so anxious to dump Chrysler (CC) that it has agreed to pay the buyer $1.55 billion to take over the ailing American auto giant. Last week we thought the Russians were coming. Now, we find out it's...
- Gm Tightens Its Belt
GM is reported to have lost over 8 and a half billion dollars last year. That's "b" with a capital "B", to say the least. Advertising budgets ($1.3 Billion for US ads alone) and health care ($1.9 Billion for prescription drugs) and pension costs ($17...
- Gm Recalls Even More Vehicles
Well, Gm must be out to prove that they can recall more cars in 30 days than anyone ever has. Last month it was 2 million in a series of massive safety recalls that covered virtually all 2003 - 2005 SUV's and crew cab trucks. You can read more details...