GM takes another hit.

No Boss · May 2nd, 2007, 10:31 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, 02:12 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, 04:13 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, 05:03 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, 05:09 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?

May 3rd, 2007, 02:12 AM	#2
thedguy ^ will bore you to death Joined: Jun 18th, 2004 Last Online: 01:38 PM Location: Fullerton, CA Posts: 5,723 Car: 1990 Mazda MX-5 Rep Power: 69	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, 05:03 AM	#4
watto Unloved and lacking a title Joined: Jun 13th, 2005 Last Online: 12:24 PM Location: Melbourne, Australia Age: 23 Posts: 5,319 Car: 1997 VW Golf MkIII CL, Giant OCR 3 Rep Power: 55	Holy moly. That's a turnaround into the negative (duh) of $774m. That's a shitload of money. Poor old GM. __________________ Thanks to Red_Bull for the avatar!

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May 3rd, 2007, 04:13 AM	#3
Samir Joined: Aug 29th, 2006 Last Online: October 26th, 2008 Posts: 372 Car: 2005 Honda Accord EX-L, 2002 Ford Mustang LX Rep Power: 10	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, 05:09 AM	#5
NecroJoe Joined: Apr 12th, 2005 Last Online: 09:29 AM Location: San Francisco area, CA, USA Age: 29 Posts: 1,721 Car: 2001 Mercury Cougar V6 Rep Power: 52	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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