The US Treasury announced last night that the
US
car finance
company GMAC has been given a further
cash injection of $7.5 billion to allow it to continue
lending to customers and
dealers .
From here on in, according to reports, the treasury will hold a
35.4% stake in GMAC. The
car finance provider is the
finance arm of massive
carmaker General Motors. The second round of
investment tops up an earlier $5 billion injection of
cash.
GMAC has an upgraded level of access to
credit lines due to its size and involvement in the functioning
of the entire US
car industry . The
loan will allow the company to continue lending to dealers and
consumers, and start meeting its own capital requirements.
The aim of the cash injection is to stabilise the
car finance market, and aid in the overall recovery of the
economy.