- GMAC
Infobox_Company
company_name = GMAC LLC
company_
company_type = Private
foundation = 1919
company_slogan =
location = flagicon|USADetroit ,Michigan
USA
key_people =Al de Molina CEO
industry =Financial Services
num_employees = 31,400 (2006)
products =Mortgage loan s
revenue = loss US$21.187 Billion (2007)
net_income = loss US$(2.332) Billion (2007)
homepage = [http://www.gmacfs.com/us/en/index.html/ www.gmacfs.com]GMAC (or GMAC Financial Services), formerly known as General Motors Acceptance Corporation, was previously the wholly owned
financial services arm of General Motors.GMAC Financial Services provide a suite of financial programs including automotive financing, insurance and mortgage operations in approximately 40 countries around the world.
GMAC also operates
Nuvell Financial Services and Semperian within its automotive financing division. While the main GMAC specializes in the financing of new andCertified Pre-Owned ("used") GM vehicles, Nuvell is thesubprime lending arm of GMAC for GM associated dealerships. Nuvell also operates National Auto Finance which provides non-GM dealerships access to an additonal subprime lending source, and recently a prime product. Semperian provides customer relationship management, servicing, and collection through several inbound call centers across the US, primarily for customers residing in the GMAC portfolio.Its other businesses includeResCap Holding , an umbrella company for GMAC's residential mortgage business, andGMAC Home Services , a real estate services subsidiary. As well, it is an associate sponsor of allHendrick Motorsports racing teams.ResCap Holding is the parent for
GMAC Mortgage ,GMAC-RFC ,GMAC Bank ,Ditech.com , andHomecomings Financial .GMAC Home Services is the parent for
GMAC Real Estate , formed by the purchase ofBetter Homes and Gardens Real Estate in 1998,GMAC Global Relocation Services , andGHS Mortgage .Divestiture
To raise money for reorganization, General Motors divested various assets including GMAC. This divestiture was accelerated at the prompting of investor
Kirk Kerkorian and his former representative on GM's board, Jerome York.On
March 23 ,2006 , General Motors announced that it completed the sale of a 78% interest inGMAC Commercial Holding , its commercial real estate subsidiary, for $1.5 billion in cash to a private investment group includingKohlberg Kravis Roberts & Co. ,Five Mile Capital Partners andGoldman Sachs Capital Partners. The deal includes the payoff of all intracompany debt owed to GMAC, bringing the total value of the deal to $9 billion. The new entity, in which GMAC owns a 21% interest, is known asCapmark Financial Group , Inc.On
April 3 ,2006 , GM announced that it would sell 51% of GMAC as a whole to a consortium led byCerberus Capital Management , raising $14 billion over 3 years. Investors also includeCitigroup 's private equity arm andAozora Bank of Japan. The group will pay GM $7.4 billion in cash at closing. GM will retain approximately $20 billion in automobile financing worth an estimated $4 billion over three years. The sale was completed in November 2006.It was revealed on October 10th, 2008 that GM may exchange its remaining 49% stake in GMAC to Cerberus for Chrysler LLC, potentially merging two of Detroit's "Big Three" automakers. ["Yahoo! News" [http://news.yahoo.com/s/ap/20081011/ap_on_bi_ge/gm_chrysler_merger_talks Reports: Chrysler, GM discuss merger, acquisition] ]
McNamara - GMAC Defrauded
Between 1980 and 1991, GMAC was the victim of a billion dollar fraud involving a Long Island Buick-Pontiac dealer named John McNamara [cite web
title = Car Dealer Admits Fraud of Billions of Dollars
url = http://query.nytimes.com/gst/fullpage.html?res=9e0ce5d71f38f933a2575ac0a964958260
publisher =New York Times
accessdate = 2008-07-02] . McNamara borrowed the money over the course of 11 years taking out loans for vans, up to 17,000 a month at a purchase price of aroundUS$ 25,000 each, purportedly for customization and export to Cyprus. McNamara did not actually purchase these vans, and the customization and export/import businesses did not actually exist. McNamara instead skimmed off some of the money and kept the rest, using it to pay off the loan. He then obtained additional loans to cover the difference. With each new round of loans, which reached levels of nearly US$2 billion by 1991, the bulk was used to pay off the previous round of loans, with McNamara pocketing the difference. Since all loan payments were made on time, GMAC viewed McNamara as a valued and even profitable customer, extending him special terms, such as increasing the time required for his first payment from the standard 30 days to 60 days. When the fraud was eventually discovered, after loans totaling over US$6 billion, it resulted in approximately $436 million in unpaid inventory financing.cite journal |title=Employee fraud: internal auditors must train themselves to recognize fraud symptoms and pursue the truth |journal=Internal Auditor |date=Oct, 1996 |author=W. Steve Albrecht |url=http://findarticles.com/p/articles/mi_m4153/is_n5_v53/ai_18901640/pg_1]GMAC conducted an in-depth analysis of the events that had enabled the fraud to take place. This investigation resulted in a significant re-structuring of the commercial credit operations of the company.
References
External links
* [http://www.gmacfs.com/us/en/index.html GMAC Financial Services]
* [http://www.gmacm.net GMAC Retail Branch & Loan Officer Locator]
* [http://www.gmacrealestate.com GMAC Real Estate]
* [http://www.gmacinsurance.com GMAC Insurance]
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