DETROIT (April 1, 2009) -- GMAC Financial Services is initiating some extraordinary actions today to reduce the stress on U.S. auto dealers and to expand the credit available to retail customers. GMAC will temporarily ease wholesale finance charges for dealers and earmark $5 billion for consumer auto loans over the next 60 days.
"Dealers have told us that cash flow is critical right now," said GMAC President Bill Muir. "We want to do everything possible to help dealers sell their inventory of cars and trucks, while preserving their working capital during the next couple of months."
GMAC's actions for dealers, effective immediately, will include:
"The option to defer wholesale interest payments alone can be a significant temporary boost to cash flow for most dealers," Muir explained. "Our goal is to ease the burden on dealers over the next few months as they work hard to lower costs, reduce inventory and protect their financial stability."
For retail customers, GMAC will further enhance and expand its already very competitive retail financing programs, adding:
"GMAC now finances a broad spectrum of auto buyers, similar to traditional levels," Muir said. "Through March, we financed over $2 billion in new and used retail auto contracts. Over the next 60 days, GMAC will make available at least $5 billion in order to increase the flow of credit to U.S. automotive customers."
Muir added, "GMAC has funding available to stimulate auto sales. We want to do our part to support both the U.S. auto industry and individuals in the market for a car or truck."
About GMAC Financial Services
Auto retail veteran and F&I products expert Paul McCarthy has joined AUL Corp. as vice president of national sales.