DETROIT — GMAC Financial Services has installed a new CEO as it struggles with losses stemming from the hard-hit residential mortgage market.
Alvaro de Molina, former CFO of Bank of America, was named GMAC's CEO, effective April 1. He will replace Eric Feldstein, 48, who will move to Cerberus Capital Management LP as an adviser. Cerberus, a private equity firm, owns 51 percent of GMAC.
Molina, 50, joined GMAC as COO in August.
"Our auto finance operation is not going to be changed as a result of the announcement," said Gina Proia, a GMAC spokeswoman. "The company is focusing on our core strengths, which includes our large share of auto finance. It's a priority to keep the needs of our customers, including our dealer customers, in mind."
On Feb. 20, GMAC announced it was cutting its U.S. auto finance work force by 15 percent and would consolidate offices in the United States and Canada. The restructuring effort is expected to save about $175 million annually.
Those actions followed GMAC's Feb. 5 announcement of a $724 million net loss in the fourth quarter and a $2.3 billion loss for 2007. The results were dragged down by losses at Residential Capital LLC, GMAC's mortgage unit. The North American auto finance unit posted net income of $1.1 billion in 2007.
On Feb. 22, Standard & Poor's downgraded GMAC and its ResCap unit's credit rating to "junk" status with a negative outlook.
Molina joined Cerberus last summer after 17 years at Bank of America Corp. Feldstein joined GM in 1981 in the treasurer's office. He has been CEO of GMAC since November 2006.
Jamie LaReau contributed to this report