DETROIT — With the federal government almost certain to take control of GMAC Financial Services, analysts suggest it could become a loan machine that gives General Motors and Chrysler an advantage over their competitors.
The company was one of 10 financial firms ordered to raise more capital after taking a stress test. In GMAC’s case, it needs $11.5 billion, and the most likely source is Washington.
A government-controlled GMAC would have the power to offer low-cost loans to buyers of GM and Chrysler cars and trucks as a way of steering business to the troubled automakers.
“GMAC could become the Freddie Mac and Fannie Mae of auto finance. It would probably help sales of GM and Chrysler cars, but it also increases the risk of taxpayer loss,” said Bert Ely, a banking consultant in Alexandria, Va.
“A very serious question is being raised about how the government could use a GMAC to advance the fortunes of GM at the expense of other automakers like Ford and Toyota,” he said.
The Obama administration already owns 5 million shares of GMAC, which it got in exchange for a $5 billion bailout loan. And Treasury Secretary Timothy Geithner said Friday his department is poised to offer GMAC more help.
