GMAC has limited funding, may trim lending -report
NEW YORK (Reuters) - GMAC LLC has "limited if any access to funding" for its mortgage and auto lending units, Chief Executive Alvaro de Molina told the finance company's employees in an e-mail, according to a Bloomberg News report on Wednesday.
The Detroit-based company may trim auto lending in some non-U.S. markets and is mulling "strategic initiatives" for insurance businesses, de Molina said, according to the report.
Gina Proia, a GMAC spokeswoman, did not immediately return a request for comment. Private equity firm Cerberus Capital Management LP [CBS.UL] owns 51 percent of GMAC, while General Motors Corp GM.N owns 49 percent.
GMAC has already begun giving car loans only to buyers with the best credit scores as the global financial crisis strains its access to capital. On Monday, it said it would lend only to borrowers with a credit score of 700 or above.
Cerberus also controls Chrysler LLC, and GM has held talks with the private equity firm about a merger or other partnership with Chrysler, sources have said.
(Reporting by Jonathan Stempel)
