GMAC Considering Major Closings

It’s no secret that GMAC has been hit hard by the auto loan crisis. The financier has lost millions in auto loans that have gone delinquent, and even more in the number of car loans that people just can’t afford to take out in this economy.

However, today they are expected to make an announcement that they will be closing about 75% of their auto loan offices in both the United States and Canada. They are reducing the number of their auto loan offices that serve the US to four, and get rid of three of the four that currently exist in Canada.

The company lost $2.3 billion last year, and the tightening of purse strings was simply a matter of time. The company previously had 16 offices in the US, which means they are closing down twelve of their current auto loan centers.

This of course means bad news for the economy as those people that currently work for the company will now be looking for other positions. This in turn will simply hasten the downward spiral of our economy. The auto loan company says that they can only base their year and their actions on how they did last year, and they can only assume that it will get worse before it gets better.



Back to March 2008 Archives