General Motors Acceptance Corp. (GMAC) is seeking a buyer for its commercial mortgage business as part of an ongoing GM initiative to shed non-automotive businesses. GMAC also declares that the GM subsidiary itself is not for sale.
Founded in 1919, GMAC is the oldest captive financial arm in the auto industry. Its commercial mortgages accounted for $20 billion in income last year with assets of $12 billion. In 2002, GMAC earned an all-time record of $1.9 billion, up from $1.8 billion in 2001.
“Commercial mortgages are as good a profit earner as GMAC can get, “ says Comerica Bank Chief Economist David Littman. “But they're in the auto business and want to focus on selling vehicles.”