Partial Sale of GM Finance Unit May Repair Auto Business

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00018241-partial-sale-of-gm-finance-unit-may-repai/

General Motors Acceptance Corp., or GMAC as it is commonly known, has long brought in all or most of GM’s profits and is the only bright spot in what’s expected to be a dismal 2005.

“That’s why we joke about GM being a bank that dabbles in producing automobiles,” says Kevin Tynan, analyst at Argus Research.

While bond and stock investors have been whispering about a partial divestiture of GMAC for months, Monday was the first time CEO Rick Wagoner said the company is considering it. Wagoner said GM would seek a partner to buy more than half of GMAC but wouldn’t discuss price.

A partial sale of GMAC would bring in about $10 billion in cash.

For this complete story, please visit Partial Sale of GM Finance Unit May Repair Auto Business.

Partial Sale of GM Finance Unit May Repair Auto Business

Unknown Author

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