Troubled GMAC: Out goes Molina in comes Carpenter
GMAC Financial Services, the struggling company that provides loans to GM customers and dealers, has named a current board member, Michael Carpenter, their new CEO. Carpenter stepped in for Alvaro de Molina, who was ousted after less than a year and a half at the position. Carpenter has publicly vowed to turn the company around and catapult it into a “premier auto finance company”.
“The top priority is to turn GMAC into a premier auto finance company and pay back the government in a reasonable time frame,” Carpenter said. “I am confident we can achieve that.”
Under Molina, GMAC had already received $12.5 billion from the U.S. Treasury’s Troubled Asset Relief Program, but still managed to lose $767 million, largely due to to bad loans in its ResCap mortgage division.
DeMolina became head of GMAC when Cerberus Capital Management, the previous owner of Chrysler, took a 22 percent stake in the finance company.
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