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GMAC (& therefore GM) Officially Saved

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I wonder what the market will do tomorrow on this news?

I'm also interested to see how truck sales did in December. If this bailout opens up GMAC's purse strings GM could move some trucks in January.

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A little bit of back of the napkin-type analysis...

...but, if you factor in the lack of GMAC retail financing (IIRC, 2% of GM sales in Nov. 08 v. up to 50%+ previously) for the last few months, GM might actually be gaining significant marketshare. GMAC's implosion has hurt GM in many ways more than managerial blunders on the product side---especially since you've got to figure the economy has all but eliminated the casual shopper.

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GMAC (& therefore GM + Cerebrus -> Chrysler) Officially Saved

Fixed

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Well that is another excuse gone.

So neither GMAC nor GM could satisfy the government's requirements. So what does the government do? It gives them the cash.

This is getting silly.

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GMAC (& therefore GM + Cerebrus -> Chrysler) Officially Saved

Fixed

"Officially saved?"

I'm not sure it matters much. If this is anything like the banks (and appartently it is!) it isn't like GMAC is going to open the purse strings very wide.

But at least it takes another excuse off the table for Feb/Mar when GM+Chrysler come asking for more money.

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"Officially saved?"

I'm not sure it matters much. If this is anything like the banks (and appartently it is!) it isn't like GMAC is going to open the purse strings very wide.

But at least it takes another excuse off the table for Feb/Mar when GM+Chrysler come asking for more money.

To clarify---without a GMAC bailout, there was no GM going forward. A GMAC failure meant instant death for up to 40% of GM's dealers. The money used should allow some lending by GMAC, as opposed to the extremely limited participation today. Any incremental help is desperately needed.

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"Officially saved?"

I'm not sure it matters much. If this is anything like the banks (and appartently it is!) it isn't like GMAC is going to open the purse strings very wide.

But at least it takes another excuse off the table for Feb/Mar when GM+Chrysler come asking for more money.

Check the thread title and then check my statement. I am not making any comment about whether it matters or not. What I meant was both GM as well as Chrysler got indirect funding becuase of Cerebrus' stake in GMAC.

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Saved? No, UAW "saved" to continue to dwindle GM to nothing.

It's a shame it went through.

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Saved? No, UAW "saved" to continue to dwindle GM to nothing.

It's a shame it went through.

Not going to lecture with a primer on exactly how GM can't survive without GMAC---but suffice it to say that while the UAW is a direct beneficiary of the whole ship not going down, they are simply one of many actors who had their asses pulled from the fire with the rescue of GMAC.

And I have to give GMAC credit in one regard---the day after they got their money, it was put into circulation, unlike the other banks that have been bailed out--many just stuck their cash in their vaults to wait out the storm...

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GMAC is now lowering minimum credit score from 700 to 621.

I guess I was wrong about the purse strings not opening.

It will be interesting to see if that just gets them into the same trouble again. Not that it was a lot of trouble really, what with Uncle Sam ready to clean up the mess.

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Check the thread title and then check my statement. I am not making any comment about whether it matters or not. What I meant was both GM as well as Chrysler got indirect funding becuase of Cerebrus' stake in GMAC.

Gotcha, and good point.

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I guess I was wrong about the purse strings not opening.

It will be interesting to see if that just gets them into the same trouble again. Not that it was a lot of trouble really, what with Uncle Sam ready to clean up the mess.

lowering the credit score requirement is just one piece. I'm sure the people here who work at dealerships can verify, but there are going to be stricter requirements for proof of income and minimum down payment.

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Movement is a good thing, however incremental, inertia was killing GM faster than any other factor. Leaving them twisting in the wind for so long has done great damage and made recovery that much more difficult.

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I guess I was wrong about the purse strings not opening.

It will be interesting to see if that just gets them into the same trouble again. Not that it was a lot of trouble really, what with Uncle Sam ready to clean up the mess.

I thought GMAC's problems were with mortgages, not auto loans? Lowering credit score requirements for approving auto loans shouldn't lead GMAC down the same path of darkness.

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GMAC is now lowering minimum credit score from 700 to 621.

So how is that likely to affect those of us with good credit? Will we still pay the same interest rates or will we have to pick up the tab again if these loans go south?

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I thought GMAC's problems were with mortgages, not auto loans? Lowering credit score requirements for approving auto loans shouldn't lead GMAC down the same path of darkness.

I'm not sure where most of the problems were.

I believe the first auto-related steps taken involved a reaction to the huge negative equity they were taking on lease returns for trucks. I never really understood why auto loans would be affected. I just assumed it was a knee-jerk reaction to the economic situation in general and the fear that many auto loans would go bad.

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So how is that likely to affect those of us with good credit? Will we still pay the same interest rates or will we have to pick up the tab again if these loans go south?

Sounds like if you pay taxes at all you may pick up the tab.

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Sounds like if you pay taxes at all you may pick up the tab.

Good grief: do you actually think before you type?

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Good grief: do you actually think before you type?

Well that was a very thoughtful response on your part.

Care to actually comment on what is wrong with my post?

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Well that was a very thoughtful response on your part.

Care to actually comment on what is wrong with my post?

I was kinda wondering the same thing. Your response is kinda what I was thinking. And I generally do think before I post.

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Sounds like if you pay taxes at all you may pick up the tab.

No, if you buy anything over the next few years you will pay for all of this.

Inflation is going to be out of control by 2011.

Edited by carman21
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