Housing and car slumps hit GMAC

LONDON (ShareCast) - Auto and mortgage finance company GMAC (NYSE: GOM - news) fell victim to slumps in the housing and car markets as it reported heavy losses over the second quarter.

Losses over the three month period totalled $2.48bn, compared with profits of $293m over the same period a year ago.

Automotive finance losses totalled $717m compared with earnings of $395 the previous year, while losses from the real estate finance division widened to $1.86bn from $245bn.

"A soft economic environment and continued volatility in the mortgage and credit markets have significantly affected results for the second quarter," said GMAC chief executive Alvaro de Molina.

"While conditions such as higher fuel prices and weaker consumer credit prove to be headwinds, we continue to aggressively manage through this economic disruption to position GMAC for longer-term success."

Source: http://uk.biz.yahoo.com/080731/214/i44wc.html