GMAC Financial Services has raised $18.1 billion through a variety of nongovernment sources since last fall in a drive to go after market share.
The latest jolt: Ally Bank, GMAC's retail banking subsidiary, obtained a $7 billion revolving credit line with a syndicate of lenders. The funds will be used to expand GMAC's commercial and retail loan and lease business, says spokeswoman Gina Proia.
The revolving credit line -- which matures within a year -- is a first for Ally Bank, said GMAC Treasurer Jeffrey Brown in a statement. The funding "further strengthens and diversifies its liquidity sources," Brown said.
GMAC raised about $3.9 billion in unsecured debt to date in 2010 and earlier this month launched a debt offering in Europe. Ally Bank sold $3.6 billion in auto loan securities to U.S. investors since September and $3.6 billion in auto loan securities to investors in Canada in the first quarter of 2010.
At the end of 2009, Ally Bank also had $29.9 billion in deposits.
The U.S. Treasury Department has invested more than $16 billion in GMAC since December 2008 and had a 56 percent stake in the company as of last December.
Sid DeBoer is CEO of publicly held Lithia Motors Inc., which has a large concentration of Chrysler Group and General Motors stores. DeBoer says GMAC began competing aggressively for the retail finance business in the fourth quarter last year, though it still lags in commercial finance.
For years, GMAC was the nation's highest-volume retail auto lender. But GMAC slid into second place behind Toyota Financial Services in 2008 and into fifth-place in 2009, according to Experian Automotive's AutoCount rankings of the top automotive lenders.
As GMAC expanded its access to funds late last year, it increased its share of the retail finance business. In the fourth quarter, GMAC ranked third on Experian's list of the nation's top lenders.