Oct 24, 2005
For years GM has been putting its profits into its own financial arm GMAC (General Motors Acceptance Corp.) GM claims it sold the cars at a loss. And yet GMAC made big bucks financing the sales of these cars. In other words, it was a bookkeeping scam and nothing but a way to transfer the profits produced by GM workers into GMAC.
Now GM is talking about selling 51% of GMAC, so it will no longer be in control of it. Why are they getting rid of this cash cow? One thing is sure. GMAC won’t be liable for any money GM hasn’t put into its pensions or other benefit plans.
It’s a shell game. The wealth in GMAC today was produced by GM workers over the decades. It should be used for the benefit of the workers who produced it.