GMAC gets $6B bailout

Hopefully they will do as they say and turn around and indeed lend more money on better terms to consumers:

From the WSJ: The federal government Monday deepened its involvement in the U.S. automotive industry by committing $6 billion to stabilize GMAC LLC, a financing company vital to the future of struggling car maker General Motors Corp.

In response, GMAC said Tuesday that it will immediately resume auto financing for “a broader spectrum of U.S. customers.”

The company said it will modify its credit criteria to include retail financing for customers with a credit bureau score of 621 or above, compared with the 700 minimum score it put in place two months ago as its troubles deepened. The median US consumer credit score is 723.

“The actions of the federal government to support GMAC are having an immediate and meaningful effect on our ability to provide credit to automotive customers,” said GMAC President Bill Muir said in a prepared statement. Full article

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