GMAC announced today a major restructuring plan for its North American auto finance business. The new plan will reduce GMAC’s work force by 15%, and will consolidate many of its North American offices into larger regional offices.
GMAC says the restructuring is intended “to reduce costs, streamline operations and position the business for scalable growth.”
According to Automotive News, the plan will see sixteen U.S. business offices, three U.S. regional offices and four Canadian business offices absorbed into five regional offices in Atlanta, Chicago, Dallas, Pittsburgh and Toronto.
Despite the restructuring, the transition should be invisible to dealers. “Most dealers will not see a change in the GMAC representative that services their dealership or their accounts,” GMAC spokeswoman Sue Mallino told Automotive News. “We’re very sensitive to maintaining a presence in local markets, and we will have people stationed throughout the U.S. and Canada in order to stay in tune with local market needs.”
GMAC will cut about 930 of its 6,275 North American jobs — consisting mostly of administrative staff and back-office operations. The cuts should save the company about $175 million annually.
GMAC — which is owned by Cerberus (51%) and General Motors (49%) — posted a net loss of $2.3 billion in 2007, although its auto finance division earned $1.1 billion.
02/20, 4:59 PM
posted by:
injunraiv
1st post bishes!
02/20, 5:11 PM
posted by:
WEKS
Soon the only car manufactures with a domestic work force… will be the imports.
02/20, 5:26 PM
posted by:
RicardoHead
Does this mean I’ll get more cash back now?
02/20, 5:32 PM
posted by:
pmpvtkc
Beginning of the end of GM, knew it was coming.
02/20, 6:03 PM
posted by:
injunraiv
^^ and actually, GM and GMAC are different entities. This is just a cost saving measure, made possible by advancements in technology. I don’t see it as the end of the world…
02/20, 7:50 PM
posted by:
corvette
just a little bump in the road.
02/20, 10:14 PM
posted by:
johnnycanuck
Deanster: take it one step further. Why couldn’t one finance company do the business of GM and Chrysler? Like you say, it’s just basic banking- all the the deals have been signed and a computer doesn’t give a flying you know what about brand loyalty.
02/20, 10:29 PM
posted by:
Get Real
This was the jewel in GM’s portfolio. The cash cow.
Ouch.
02/20, 11:15 PM
posted by:
F451
I read about this a bit early today, and here is an article that adds a little more detail: GMAC Whack
02/23, 12:54 PM
posted by:
jackjimturkey
Finance companies suck Balls. I got my loan from my bank. No way it’s gonna take four years to pay off my car,though.
02/25, 5:17 PM
posted by:
Heart64
GMC get less when you sell. Buy your GMC for more then sell for alot less. The lowest Resale value of any Full sized Pickup Truck on the market TM**** GMC
Here at GM we’ve engineered it to the lowest standards possible.