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GM are selling GMAC for $14bn.
No amount of money will save them whilst the quality control stays crap. That's the main reason most of the UK motor industry went under and even stupidity isn't enough of an excuse not to avoid dealing with the problem.
General Motors has announced it is to sell a majority stake in its highly profitable financing business to a hedge fund-led group for $14bn (£8bn).
The struggling car giant had been in talks with Cerberus Capital Management about selling GMAC - which made a $2.8bn profit in 2005 - for weeks.
GM is trying to raise money to sure up its finances, which have been hurt by weak sales and huge pension costs.
It also faces huge liabilities from bankrupt car parts firm Delphi.
GM made a £10bn loss last year and is cutting 30,000 jobs in an effort to make its business more competitive.
It will raise $7.4bn upfront from the sale of 51% of GMAC to a group including Cerberus, Citigroup and Aozora Bank.
The deal will also yield a further $6.7bn from car lease and retail assets, which GM will retain, and financing costs over the next three years.
GM said the deal would be a major step in the company's effort to drag itself back into profitability.
"This agreement is another important milestone in the turnaround of General Motors," said chief executive Rick Wagoner.
"It provides significant liquidity to support our North American turnaround plan, finance future GM growth initiatives, strengthen our balance sheet and fund other corporate priorities."
Some analysts have warned that falling sales and soaring employee pension and healthcare liabilities could force GM into brankruptcy.
GM also faces potential liabilities from Delphi - the car parts firm its once owned - of up to $12bn.
Delphi is taking legal action to try and invalidate a host of GM contracts as it seeks to guarantee its survival.
The struggling car giant had been in talks with Cerberus Capital Management about selling GMAC - which made a $2.8bn profit in 2005 - for weeks.
GM is trying to raise money to sure up its finances, which have been hurt by weak sales and huge pension costs.
It also faces huge liabilities from bankrupt car parts firm Delphi.
GM made a £10bn loss last year and is cutting 30,000 jobs in an effort to make its business more competitive.
It will raise $7.4bn upfront from the sale of 51% of GMAC to a group including Cerberus, Citigroup and Aozora Bank.
The deal will also yield a further $6.7bn from car lease and retail assets, which GM will retain, and financing costs over the next three years.
GM said the deal would be a major step in the company's effort to drag itself back into profitability.
"This agreement is another important milestone in the turnaround of General Motors," said chief executive Rick Wagoner.
"It provides significant liquidity to support our North American turnaround plan, finance future GM growth initiatives, strengthen our balance sheet and fund other corporate priorities."
Some analysts have warned that falling sales and soaring employee pension and healthcare liabilities could force GM into brankruptcy.
GM also faces potential liabilities from Delphi - the car parts firm its once owned - of up to $12bn.
Delphi is taking legal action to try and invalidate a host of GM contracts as it seeks to guarantee its survival.
No amount of money will save them whilst the quality control stays crap. That's the main reason most of the UK motor industry went under and even stupidity isn't enough of an excuse not to avoid dealing with the problem.
thats not the only reason why people sue
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