Other Editorials

Last Straw

Jim Dollinger
Thursday, November 9, 2006

As if the loss of Olds wasn't enough, Wagoner is now about to spin off the Crown Jewel (nothing to show for it, absolutely ZIP to the shareholders). It is beyond my imagination how in the world the Board has stood by and watched as market share has plummeted and losses in the BILLIONS have piled up while this man remains in office. Now we are about to burn the furniture to have heat. I am truly afraid the worst has come to pass and in spite of the continued proclamations of future products saving the day, GM has reached the point of no return. Without question, General Motors is the worst run auto company on the planet and is led by the worst executive in the history of the industry.

GMAC sets Nov. 30 as target date for closing sale

John D.Stoll / Associated Press

DETROIT -- General Motors Corp.'s lending arm, GMAC Financial Services, has told employees that it is targeting Nov. 30 as the closing date for the sale of a controlling stake in the unit to a group of investors.

GM agreed to sell 51 percent of GMAC to a consortium led by Cerberus Capital Management LP in April for $14 billion and initially targeted a closing date for the sale in the fourth quarter, but never gave an actual date. The deal had to clear several hurdles, including regulatory approval, and GM is still talking with the Federal Deposit Insurance Corporation about issues related to a change in control of the GMAC Automotive Bank.

In a document sent to GMAC employees related to employee-benefit options, GMAC said the targeted closing date for the deal is now Nov. 30. Portions of the document were provided to Dow Jones Newswires by Mainstay Capital Management, which manages assets for many GM employees.

GMAC spokeswoman Toni Simonetti confirmed the target date.

"Yes, it does refer to the targeted closing date and we're working very hard to meet all of the requirements to get there," she said. Discussions with the FDIC are ongoing, but did not provide specific details, she said.