Our GM relationship: A critical asset
Our most-discussed challenge has centered on credit rating issues in light of GMAC’s relationship to General Motors. What is often overlooked in such discussions is the tremendous value our relationship with GM brings to the business of GMAC.
We are a provider of subvented and standard retail installment contracts and leases to retail customers through GM dealerships that amount to more than $60 billion in volume per year. This represents a steady and profitable business stream for GMAC, one that is a good source of high credit-quality assets at low acquisition costs.
We have access to the GM dealer network. We benefit from strong, loyal and profitable relationships with more than 12,000 GM dealerships worldwide. GMAC provides many GM dealerships with inventory financing: 78 percent in the United States, 96 percent in Canada and 84 percent outside North America. In addition, GM dealers serve as a powerful sales force for a broad range of GMAC products, from retail automotive contracts to extended service contracts.
Another considerable benefit of our relationship with GM is the access it provides us to the GM “family”—millions of employees, retirees, dealers, suppliers and their families—a large, stable, loyal and highly creditworthy customer base for auto finance, insurance and mortgage products.
