Leaders in North America GMAC’s North American Operations (NAO) provide a wide array of financial products and services to automotive dealerships and retail automotive customers in the United States and Canada. NAO has built strong dealer relationships by offering high-quality wholesale financing services, attractive volume incentives and a full array of highly competitive products like extended service contracts, dealership insurance products and more.
Branded retail offerings from GMAC represent a powerful sales tool to help dealers sell cars and trucks. SmartBuy, a balloon contract designed to minimize monthly payments, and SmartLease, our standard vehicle lease product, give customers financing options that make it easier to drive that new vehicle home. And SmartAuction provides a convenient Web-based way to purchase quality off-lease vehicles.
Nuvell is GMAC’s non-prime and private label subsidiary that serves GM and non-GM dealers. NAO also has significant servicing capabilities, including Semperian, formed in 2005 to execute its servicing business in the United States.
To improve our ability to fund the business, GMAC aggressively advanced its transformation into an originate-and-sell business model with two large transactions in 2005. These retail automotive “whole loan” sale agreements provided the ability to sell a full spectrum of retail auto installment contracts and created two committed sources of secured funding of up to $75 billion during the next five years.
Other bright spots from the year were Nuvell’s record earnings in 2005, growth of GMAC Automotive Bank assets to more than $2.3 billion and SmartAuction reaching 340,000 sales for the year.
Looking ahead to 2006, our focus will be on building upon our strong dealer relationships, maintaining prudent underwriting standards, aggressively managing costs and fine-tuning every single aspect of the service we deliver to our customers.
