Government To Give Billions To GM's Funding Arm

  • Playlist
  • Download
  • Embed
    <iframe src="" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

The government says it will provide $5 billion to GMAC Financial Services from the $700 billion bank rescue program. The Treasury Department also says it will lend up to $1 billion to GM so it can participate in a debt for equity swap with GMAC, which is seeking to raise additional capital. The loan is in addition to the financial assistance the government announced earlier this month for GM and Chrysler.


NPR's Business News starts with another bailout for the auto industry.

This time it's not to help build cars, but to buy them. The latest federal aid, worth $6 billion, is going to the financing arm of General Motors, GMAC. GMAC has provided most of the financing for GM's dealerships and people buying its cars, plus lots of home mortgages.

Over the past few months, the company's ability to lend has been sharply limited. GM says that's one reason U.S. auto sales plunged more than 40 percent in November. The new aid package is worth $6 billion. It includes a purchase of $5 billion in equity in GMAC, along with a billion dollar loan to help GM purchase more. That comes on top of the more than 13 billion in loans already earmarked for GM.

Copyright © 2008 NPR. All rights reserved. Visit our website terms of use and permissions pages at for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR’s programming is the audio.



Please keep your community civil. All comments must follow the Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.

NPR thanks our sponsors

Become an NPR sponsor

Support comes from