BUSINESS BRIEFING / AUTOMAKERS
Times Wire Reports
General Motors Corp. said in a Securities and Exchange Commission filing that it used the proceeds of an $884-million Treasury Department loan to increase its equity stake in its financing arm to about 60%.
GM had previously held a 49% stake in GMAC.
As part of the federal bailout for GMAC approved late last year, the financing company received $5 billion from the government’s $700-billion bank rescue package.
In addition, Treasury also said it would lend GM as much as $1 billion so that the automaker could buy additional equity offered by GMAC as part of its effort to raise more capital.
