We let our steel industry go decades ago by trying to compete with other countries

who subsidized their companies and sold steel below cost. Now we are going to do the same with our auto industry. Foreign auto makers have received subsidies for

research and development etc. and now receive favorable tax deals form American

communities to set up manufacturing plants in their localities. Soon the American econmy will be based on nothing and our children will live in a third  world country.

Wake up and support American Manufacturing.

The TARP program was intended to allow banks to lend more money to individuals, GMAC is one of those companies that are making that happen instead of awarding the CEO's and other upper level management with bonuses. As people are losing their jobs so are they losing there once 700+ credit scores with piling on debt so raising the credit criteria obviously isn't the way to go.  This would be the one and only thumbs up i would actually give to GMAC, they are actually doing what was intended and that is to make credit available more for the masses again!

Mr. Horowitz, please do your research before you write commentary!  GMAC does not provide direct 0% loans.  0% buydowns are sponsored by the manufacturers in lieu of rebates, deaker cash, and other factory programs.  Therefore, GMAC is paid by the manufacturer to buy down the interst rate.

Also, don't think I ever read any data on how car lending has brought down the banking industry or thge economy...

Opinion is not valid without facts to back it up... Your article is falacious and ignorant!

TR

Andrew Horror-wits,

Do some real research and stop making false assumptions.

I am a General Sales Manager in a still successful multi-line GM dealership, and you know NOT of what you speak.

First off, GMAC is offering reduced rates on some vehicles, but customers must give up huge rebates(which are applied toward interest), in order to get the rates. In most cases, customers save money keeping the rebates. This is marketing 101.

As far as relaxing their loan criteria, they had gotten so tight, they weren't competing. Wachovia, Bank of America, Citifinancial, and others who are succeeding, have much more lax rules to make a loan.

We have not written a loan with GMAC since September, and they are still one of the tightest sources we have with their loan funds.

Too bad you are not a true journalist. Maybe you, and others like you, are why the media is also looking for a bailout.

A 621 credit score is far, far from the subprime lending scores that were occurring in the very recent past. GMAC has been and still is one of the more demanding lenders in terms of credit scores, job time, and down payments. The author of this article really is not knowlegeable in regards to what banks and lenders are currently doing nor what they di in the past.

I worked for GMAC (auto finance) for five years in the late 80's.  At that time, management was so bad that I wished for GMAC to fail.  I feel bad for all the people going down at GM auto manufacturing, but if their mgt. was like mine, it had to happen.

Now that GMAC is pulling this new doodoo, I know that my wish was right.  Some people don't learn.

Credit score mean nothing you could pay ever bill on time for 10 yrs but if you have too much credit out there or your credit cards are 80% max out your credit score would be 570 to 590, how is this fair that a person could not get a car loan because his score is so low but he pays on time each month. Scores should mean nothing, timely payment should mean everthing and that is how someone should be score on to get a loan. GMAC keep making the loan good people who pay on time should be able to buy a car even if the score does not show it.

I think if GMAC is making loans to people with less than perfect credit at least they are making loans . The banks and insurance companies always have their risk management dept analize and still don't do anything. At least GMAC isn't attaching $ 10,000.00 prepayment penalties to their loans like the moregage co. like Countrywide did.Always remember foreign cars are assembled here but the profits go overseas. I own Gm and Chrysler vehicles and have never had a problem with quality. But I watch the gauges and do the service unlike a lot of people that want to blamr Detroit.

Andy, get in your Lexus and go back to your mansion. It's experts like you that drag the confidence of public down.

We all need to pitch in and give Andy a Yugo . Maybe he could relate to sub quality  in the automoble industry then