11:56 am, December 30, 2008
THE US government has said it will offer a bailout to GM’s car loan arm GMAC to the tune of £4.1bn.
The BBC has reported that the finance arm – co-owned by Chrysler and GM – has been offered the cash by the US Treasury to help it fund would-be car buyers’ purchases.
The move follows the $17bn dollar bail-out of GM, Chrysler and Ford earlier this month by the White House.
The Beeb says GMAC recently gained approval to become a bank holding company which gave it access to emergency government funds offered to other financial institutions.
The rescue package will see the US Treasury buy $5bn in shares in GMAC, and will increase a loan to GM by an extra $1bn.
GMAC is the main source of finance for car buyers at GM dealerships. The finance arm said it intended to act quickly to resume automotive lending to a broader spectrum of customers.
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