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GM Announcement on Friday, and GM loses $1.2B at GMAC

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GM says they will have a significant announcement on Friday. They will also be announcing their quarterly results.

GM loses $1.2B with GMAC

Finance company's quarter loss is more bad news for carmaker; bailout or Cerberus deal are ways out.

Robert Snell / The Detroit News

General Motors Corp. was forced to absorb about $1.2 billion in losses from its stake in GMAC Financial Services, but the Wall Street bailout could free the automaker from having to take on future losses from the financing company, analysts said.

GM is responsible for 49 percent of the $2.52 billion third-quarter loss posted by GMAC, a loss that is expected to weigh on the automaker's third quarter financial results when they are released Friday.

GMAC's results, reported Wednesday, included a $1.9 billion loss in its mortgage lending subsidiary, Residential Capital LLC, and there is "substantial doubt" the division will survive without additional economic support, the company said in a statement. It was GMAC's fifth straight quarterly loss.



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CNBC is saying the announcement concerns suspension of product development for future models.

Rick Wagoner will be on CNBC at 10:30 AM eastern on Friday 11/7.


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I guess I've been the leading cry-baby regarding GM bankruptcy during the last several months. I haven't even looked at Ford or the Jeep company.

In my opinion, it doesn't bode well for GM. Absent total and complete government support, GM still goes under. Sorry.

Friday will be interesting.

Benjamin Franklin noted that beer was proof that God loved us and wanted us to be happy; does God love GM?



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There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. - Ludwig von Mises

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