STRUGGLING U.S. AUTOMOBILE MANUFACTURER GENERAL MOTORS CORPORATION ANNOUNCED THAT IT HAS SOLD ITS IN-HOUSE FINANCIAL GROUP FOR AROUND $9 BILLION DOLLARS. THE EXTREMELY LUCRATIVE GMAC COMMERCIAL HOLDING CORPORATION, WHICH PROVIDES LOANS TO CAR BUYERS AND OTHER RELATED FINANCIAL SERVICES, WILL BE TRANSFERRED TO A DOMESTIC INVESTMENT GROUP FOR SOME $1.5 BILLION. THE DEAL WILL SEE AN ADDITIONAL $7.3 BILLION IN GMAC'S ASSETS TRANSFERRED BACK TO GM. NEWS OF THE SALE COMES JUST ONE DAY AFTER GM ANNOUNCED A MASSIVE EARLY RETIREMENT PROGRAM FOR 125,000 OF ITS HOURLY WORKERS. BOTH THE RETIREMENT SCHEME AND THE GMAC SALE ARE EXPECTED TO HELP THE COMPANY RETURN TO PROFITABILITY AFTER YEARS OF LOSSES. UNDER THE DEAL, GMAC COMMERCIAL WILL BE RENAMED CAPMARK FINANCIAL GROUP INCORPORATED, AND ITS WILL CONTINUE ITS MORE THAN 100 OPERATIONS IN NORTH AMERICA, ASIA AND EUROPE. ANALYSTS SAID GM NOW HAS $20 BILLION IN CASH, WHICH SHOULD HELP IMPROVE ITS CREDIT RATING AND REDUCE THE COSTS OF PAYING DOWN ITS DEBT.
