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Mar 18 2010  

Whither GMAC?

By Laura Lorber

GMAC's future just got a little more uncertain.

General Motors recently said it won't be bringing its former financing arm back into the fold, according to WSJ.com blog DealJournal.

The Treasury, which threw it a $17 billion lifeline in 2008, sees its ward as a stand-alone publicly-traded company one day. But it has a long way to go until then.

GMAC may lose its best customer if General Motor starts up its own captive financing operation, as industry observers say it must do to become competitive.

GMAC is also dealing with its money-losing ResCap mortgage subsidiary. One option for ResCap is a separate bankruptcy proceeding, but GMAC CEO Michael Carpenter has said he'd prefer a sale. But who would buy such a business with no clear turnaround strategy? Possibly, BlackRock, Blackstone and billionaire investor Wilbur Ross, according to Reuters.

Clearly, the team at GMAC has its work cut out for it.

Write to Laura Lorber


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