Government Motors

Want to buy a new car from Government Motors?

Apply for a loan through the Treasury Department........




Reports: Treasury set to lend GMAC more money
AP



NEW YORK – The Treasury Department is set to inject billions more dollars into GMAC Financial Services, according to media reports.

The Wall Street Journal said the Treasury Department will lend GMAC more than $7 billion, a step towards making the company a quasi-federal entity with the power to offer low-interest loans to would-be buyers of GM and Chrysler cars. The Detroit News put the amount at $7.5 billion.

The move comes after GMAC failed a bank "stress test" earlier this month, and the Treasury mandated that the company raise $11.5 billion within six months. GMAC already received $5 billion from the Troubled Asset Relief Program in December after the government approved its application to become a bank. In exchange for the funding, the government received 5 million GMAC shares.

The additional funding gives the Treasury more control over GMAC, and it has already told the General Motors Corp. financing arm that it must extend its financing services to bankrupt Chrysler LLC.

GMAC, which reported a first-quarter loss of $675 million, said earlier this month it has seen rising defaults in its auto finance division. That, combined with soured assets in its Residential Capital LLC mortgage unit, makes it more difficult for the company to raise the additional capital in the public markets.

It is unclear what additional mandates the government will impose on GMAC.

Analysts suggest the infusion, along with the merger of Chrysler's financial arm would make GMAC a lending powerhouse that would give GM and Chrysler a huge advantage over their competitors — including Ford Motor Co., which hasn't taken any aid from the government. A U.S.-controlled GMAC would have the power to offer better loan terms to buyers of GM and Chrysler cars and trucks as a way of steering business to the troubled automakers.

The banking arm of GMAC changed its name to Ally Bank last week, in an effort to repair its tarnished image and attract customers.

Since the government is running the auto companies now, has anyone looked to see how much of a profit the government made last year, or is projected to make this year....

errr, wait a minute...nevermind.

Stop making fun of Bush. There's only 3 republicans left on this site, it hurts their feelings.

They will do a better job that Triple Canopy, BlackWater, KRB, and Haliburton.



Like they weren't semi governmetal companies?

I doubt it. The Goverment gave these companies the contracts and then let them fuck it up.

NO GM actually produces something we can use, as opposed to the other clowns.

It is becoming apparent that the looming disaster that is the Government strategy with the auto industry will be one of the true legacies of the Obama Administration. Of course the spin will be that the horrid economy that Bush left for Obama forced him to make the bold move, blah..blah...blah

Everything was going great till January 2009

When did the government take over the auto companies? When did it fire an auto company CEO? When did the government declare it will stand behind US auto company warranties?

That is true.

What was the auto companies plan to get out of this mess? What was the CEO doing to turn things around?

1. Renault, 1981

2. NEVER. “requested that I “step aside”’ as CEO of GM.”

3. Chrysler, 1983

1. THe US government is running Renault in 1981...? Who knew? Here I thought they were a car company in France in 1981......:thinking:

2. Right...they didn't request anything..they told him.

3 Have a link to that, because I remember the loans from the government being paid back in the early 80's......

Why are you avoiding this thread: ???

http://www.sternfannetwork.com/forum/showthread.php?t=443373&page=4

In the distant future goverment will own everything

50 years

I agree with this. So much so that I think it is almost inevitable. Sociological theory states that the natural progression of market economies are to evolve into socialist ones. After that, it goes to communism, and of course we know that the backlash against the problems that come along WITH communism (not communism itself), starts the process all over again.