Go Back   DealershipForum.com > Domestic Franchises and Independent Dealers > General Motors > Sales


Thread Tools Display Modes
Old 12-14-2008, 03:54 PM   #1
Join Date: Nov 2007
Posts: 14,869
Default 40% of GM Dealers could fail if GMAC goes Bankrupt

A news report quotes a member of GM's National Dealer Council that as many as 40% of GM's dealers may fail if GMAC is forced to file for bankruptcy.

GMAC is currently working with their existing bond holders in an effort to secure $30 Billion in capital so they can qualify to be a bank holding company. GMAC has been trying to change their status to a bank holding company so they can have access to the TARP funds.

If GMAC is not able to access the TARP funds they may be forced to file bankruptcy and suspend their financing of wholesale inventory. Given the current health of GM's dealerships, it is thought that as many as 40% are not strong enough to secure another floorline.

Here's a link to the news report: http://www.bloomberg.com/apps/news?p...21D.U&refer=us
XDCX is offline   Reply With Quote
Old 12-14-2008, 10:50 PM   #2
Join Date: Nov 2007
Posts: 14,869
Default Automotive News covers the story...

I noticed that Automotive News just covered this story.

It's mostly re-hash with the exception that they estimate that as many as 50% of GM dealers could be forced into bankruptcy if GMAC fails.

The one statistic I found most interesting was GMAC's penetration as a percentage of GM's retail sales. Historically about 50% of GM's volume was financed by GMAC - last month it was 6%.

What do Chrysler and GM dealers have in common? They're both getting screwed over by Cerberus.
XDCX is offline   Reply With Quote

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Why did the Premiere Event fail, and how would you fix it? XDCX Sales 7 01-02-2015 07:06 PM
GMAC courts dealers of all makes ohiobuckeyes Finance 3 04-20-2010 04:43 PM
GMAC and NEWCO non-wholesale dealers F&I Pro Finance 1 05-29-2009 01:11 PM
Question about Bankrupt Dealers and Offshore Service Contracts XDCX Automotive Discussions 7 03-06-2009 06:20 PM

All times are GMT -7. The time now is 06:37 AM.

Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Copyright DealershipForum.com - 2008 - 2016