How can anyone make money in this business when even GMAC Financial Services is in the red? GM officials must be asking that question.
Like banks and other financial stalwarts, GMAC fell victim to the subprime mortgage foldup. The General's longtime cash cow lost $1.6 billion in the third quarter.
But there's one bit of good news. GM now owns only 49 percent of GMAC, so it lost only half of that $1.6 billion.
There's bad news, too. The other 51 percent is held by Cerberus Capital Management, the parent of Chrysler LLC.