GM Sells Majority Stake in GMAC

[Variance]

GM Sells Majority Stake in GMAC

General Motors Corp. sold a majority of its General Motors Acceptance Corp. finance unit to a group led by Cerberus Capital Management LP on Thursday, raising $7.4 billion in cash and completing a transaction that began in April.

GMAC will be able to borrow at a lower cost by separating from its parent, cutting GM's cost to sell cars to customers. The sale of a 51 percent stake meets a goal of CEO Rick Wagoner as he works to recover from last year's $10.6 billion loss.

GM will take a $2.7 billion distribution from GMAC as part of the transaction, meaning it will get a total of $10.1 billion for the stake this year. GM will get another $4 billion over the next three years, the automaker said in a statement Thursday.

The Detroit News

[mjdart]

I now worry that I may never again see 0% financing again. I bought my last 2 new GM cars with 0% 60 months and that was the driving force.

[CARBIZ]

Already we are seeing a difference with the level and quality of people answering the phone. I suspect that they have already begun outsourcing a lot of their people to cut costs.