GM takes another hit.

No Boss · May 2nd, 2007, 9:31 PM

Quote:

DETROIT (Reuters) - General Motors Corp's (GM.N: Quote, Profile , Research) former finance arm GMAC on Wednesday swung to a first-quarter loss, citing continued pressure in the mortgage market.

GMAC, in which GM retains a 49 percent stake, posted a net loss of $305 million, compared with a profit of $495 million a year earlier.

GMAC's mortgage unit ResCap posted a quarterly net loss of $910 million, more than offsetting gains from its insurance and auto finance divisions.

Aside from it being an incredibly short article, it made me think GM might have more problems than we can clearly see. Also, it's clear the debatable quality of their cars is not the reason for their successive financial problems.

thedguy · May 3rd, 2007, 1:12 AM

If I recall correctly GMAC used to be the very thing that kept them (quite) profitable. They only recently sold off a portion of the company.

Samir · May 3rd, 2007, 3:13 AM

Sorting out why GM isn't successful is a bit like trying to sort out a plate of spaghetti (multiplied by 1,000,000).

GMAC was a big cash cow for them. If it's in the red too, that's scary.

watto · May 3rd, 2007, 4:03 AM

Holy moly. That's a turnaround into the negative (duh) of $774m. That's a shitload of money.

Poor old GM.

NecroJoe · May 3rd, 2007, 4:09 AM

What would cause their financing department lose so much money? Are people defaulting on their car loans like they've been doing on their home loans?

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May 3rd, 2007, 1:12 AM	#2
thedguy ^ will bore you to death Joined: Jun 18th, 2004 Last Online: Yesterday Location: Southern Schwartzennegger land Posts: 7,734 Car: 1990 Mazda MX-5 & 91 318i. Rep Power: 185	If I recall correctly GMAC used to be the very thing that kept them (quite) profitable. They only recently sold off a portion of the company.

May 3rd, 2007, 3:13 AM	#3
Samir Joined: Aug 29th, 2006 Last Online: July 7th, 2009 Posts: 377 Car: 2005 Honda Accord EX-L, 2002 Ford Mustang LX Rep Power: 15	Sorting out why GM isn't successful is a bit like trying to sort out a plate of spaghetti (multiplied by 1,000,000). GMAC was a big cash cow for them. If it's in the red too, that's scary.

May 3rd, 2007, 4:03 AM	#4
watto Unloved and lacking a title Joined: Jun 13th, 2005 Last Online: December 8th, 2009 Location: Melbourne, Australia Age: 24 Posts: 5,707 Car: MY06 Impreza 2.0R Hatch Rep Power: 74	Holy moly. That's a turnaround into the negative (duh) of $774m. That's a shitload of money. Poor old GM.

May 3rd, 2007, 4:09 AM	#5
NecroJoe Joined: Apr 12th, 2005 Last Online: Yesterday Location: San Francisco area, CA, USA Age: 30 Posts: 5,839 Car: 2001 Mercury Cougar V6 Rep Power: 377	What would cause their financing department lose so much money? Are people defaulting on their car loans like they've been doing on their home loans?

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