In the scramble to swap gas-guzzlers for smaller vehicles, residual values collapsed, leaving GM's finance arm with huge losses on cars returned after lease.
It was matched by a dire performance from the finance arm of the us industrial behemoth General Electric, whose profits dipped 42% thanks to bad credit card debts and business loans.
Last month analysts at Citigroup proposed that it ought to spin off three big assets: NBC Universal, its media unit; its consumer-finance arm; and its property business.
Moreover, GMAC can borrow more cheaply than Ford’s wholly owned finance arm, Ford Credit.