US: GMAC reduces Q3 loss

4 November 2009 | Source: just-auto.com editorial team

GMAC Financial Services on Wednesday reported a third quarter 2009 net loss of US$767m, compared to a net loss of US$2.5bn in the third quarter of 2008.  Results in the quarter were adversely affected by losses related to legacy assets in the mortgage operations.

During the quarter various business lines including three international automotive financing operations were removed from the company's continuing operations.  Excluding these businesses, net loss from continuing operations totaled $671 million in the third quarter of 2009, compared to $2.5bn a year before.

The global automotive finance business reported third quarter 2009 pre-tax income from continuing operations of $395m, compared to a pre-tax loss from continuing operations of $379m a year before.

Total consumer financing originations during the third quarter of 2009 were $7.7bn.

"We continue to work through solutions for certain legacy assets and that is still weighing on GMAC's financial performance," said chief executive officer Alvaro de Molina.  "Progress is being made toward the transformation of the company as we shed non-strategic operations while at the same time invest in structuring the company to be more competitive for the long term."