GM sees boost from GMAC bailout, easier credit

DETROIT (Reuters) - General Motors Corp expects to see a boost to sales as low-cost loans from GMAC, made possible by the federal bailout of the finance company, roll out in showrooms, the automaker’s sales chief said on Tuesday.

“The bottom line is much better access to funding,” GM vice president for North American sales Mark LaNeve, said on a conference call with reporters.

LaNeve said GM’s sales for December had been up “considerably” from depressed November levels even before the reduced-rate financing offers announced on Tuesday. Those include zero-percent financing on a handful of slower-selling models.

“It improves our overall competitiveness,” LaNeve said of the new reduced-rate financing available through GMAC.

GMAC, in which GM currently holds a 49-percent stake, had been unable to provide low-cost financing because of pressure on its own funding since late summer.

Reporting by Kevin Krolicki, editing by Maureen Bavdek