General Motors Acceptance Corporation (GMAC)

Written by Bill Bowman



I was there...

Tell us your story >

In the early days of the motor vehicle industry, dealers paid cash to stock their inventory, purchasing just a few vehicles at a time. With the onset of the assembly line, manufacturers wanted dealers to buy vehicles in large quantities, in order to keep factories running regularly. GMAC was formed in 1919 and provided GM dealers with the financing they needed to maintain their vehicle inventories, as well as give the dealer's retail customers the ability to purchase new vehicles easily and conveniently. The evolution of GMAC:

  • 1919: The first branch was opened in New York City and was capitalized at $2,500,000. Later that year, branches opened in Detroit, Chicago, San Francisco, and Toronto.
  • 1920: A branch opened in Great Britain.
  • 1928: The four millionth retail contract was signed.
  • 1958: GMAC financed its 40 millionth vehicle and its first ever annual earnings of $1 billion were achieved. GMAC also entered the mortgage business at this time.
  • 1999: The highest earnings to date were recorded followed by the purchased of The Bank of New York’s lending unit leading to the creation of the Commercial Finance Group.
  • 2000: $1.6 billion earnings set another new record. Global growth took place in all sectors of the organization. North American Operations launched SmartAution, an Internet based remarketing channel for GMAC off-lease vehicles.
  • 2001: Produced another $1.8 billion record setting earnings year. Since its inception, GMAC has provided more than $1 trillion of financing for 150 million cars and trucks around the world.
  • 2002: Another record breaking year with nearly $1.9 billion earnings reported. GMAC now has a presence in 41 markets.
  • 2003: Earnings soared to nearly $2.8 billion, another new record. SmartAuction emerged as a top Internet remarketing tool with cumulative sales to exceed $1 million in 2004.
  • 2004: Net income of $2.9 billion marked yet another year of record earnings and the tenth straight year of increased profits. International Operations made a historical entrance into China, sales of insurance to GM customers increased eightfold, and GMAC Automotive Bank opened its doors.
  • 2005: General Motors Corporation, facing even greater losses, told investors it was seriously considering selling a majority stake in GMAC, its giant and profitable financial unit.
  • 2006: A group of investors, led by Cerberus Capital Management, bought 51% of GMAC from General Motors, which retained a 49% stake.

Tag Cloud

1897-1909 Creation  1910-1930 Acceleration  1931-1958 Emotion  1959-1981 Revolution  1982-1999 Globalization  2000-Future Transformation  AC Spark Plug  Advertising & Marketing  Allison Engineering Company  Alternative Fuels  Alternative Materials  Alternative Propulsion  Anniversaries  Autoshows  Behind the Scenes  Beyond North America  Board of Directors  Brands & Products  Buick  Cadillac  Celebrities  Chevrolet  Color & Trim  Competitions  Concept Vehicles  Corporate Responsibility  DELCO  DELCO Electronics  Dealers & Distributors  Design  Design Centers  Detroit Diesel  Diversity  Education  Electromotive  Electronics  Emblems & Logos  Employees  Endurance  Energy Conservation  Engineering  Enthusiasts  Environment & Energy  Eras  Executives  Finance  Firsts  Fisher Body  Former Divisions  Frigidaire  GMAC  GMC  GMOO - GM Overseas Operations  GM Daewoo  HUMMER  Headquarters  Holden  Hughes Electronics  I was there...  Innovation & Technology  Innovators  Joint Ventures  LaSalle  Labor  Manufacturing  Mergers & Acquisitions  Methods & Techniques  Motorama  Oakland  Oldsmobile  OnStar  Opel  Operating Units  Pace Vehicles  Parade of Progress  People  Places  Plants  Pollution Control  Pontiac  Powertrain  Proving Grounds  Racing  Research  Retirees  Saab  Safety  Sales & Service  Saturn  Shows & Events  Specific Races  Sponsorships  Studios  Suppliers  Technical Centers  Ternstedt  The Business  Trends  United Motors  Vauxhall  World's Fairs