http://news.yahoo.com/s/ap/20081224/...bi_ge/fed_gmac

 

Now lets hope this means they allow more people to get loans, like it should...

 

To be honest, I believe bailout money immediately going to GMAC and Chrysler Financial as long as the money went to auto loans and not anything else would have been enough for Chrysler to hold on, and would have been a huge help for GM.

Federal backed loans alone don't do much unless you find a way to get people who want new vehicles, and have the means to make the payments can actually get loans to make the purchases. 75% of Chrysler's financing depends on Chrysler Financial, and dealers report continuing showroom traffic.

The press also hasn't been putting Chrysler's potential for bankruptcy in the spotlight as it has GMs, and you can see the results in how much % GM's sales have plunged over Chrysler's.

 

All I see is Cerberus getting more govt money. Why are Cerberus getting financial assistance when they are making billion$ each year in profits?

 

how come GM has to reduce their ownership to less than 10% while Ceberus gets to hold on to 33%?

 

Friend at a dealership says they still have a decent amount of traffic, just can't get loans for 80% of the people who want to buy...

 

Some things to note...

This plan has GM committed to retaining less that 10% of GMAC. Cerberus must give up some shares as well. This story says 33%, another I've read says 14%.

 

As long as GM customers can get loans for GM cars, it doesn't matter who owns it IMO.

 

There is still plenty of traffic on the roads. That means cars are wearing out. That means pent up demand that "once the credit problems are worked out" should translate into sales for dealerships. American car makers & dealers just have to be smart about tapping into that demand and they should be on their way to solvency.

Looks good on paper anyway.