NEW YORK - GMAC Financial Services said Tuesday its first-quarter loss widened as its automotive finance business weakened — though results improved slightly in its struggling mortgage operations.
GMAC is majority owned by private equity firm Cerberus Capital Management. General Motors Corp. owns a minority stake in the financial services firm, though GMAC’s mortgage difficulties of late have weighed on GM’s results.
GMAC lost $589 million during the first quarter of 2008, compared with a loss of $305 million during the same period the previous year.
The automotive finance division earned $258 million during the first quarter, a 35 percent decline from the year-ago period. GMAC cited weaker credit performance, including rising credit loss provisions and rising costs tied to restructuring operations.