WASHINGTON - GMAC Financial Services still has no business plan even after receiving a $17.2 billion investment from the government, and the Treasury Department has been lax in making sure that the bank repays taxpayers, a congressional panel said. According to the panel, Treasury should consider the possibility of breaking up GMAC and merging its auto-finance unit back into General Motors Co., Automotive News reported. That measure would restore GM's financing operations to a model used by a number of other automakers, said the panel headed by Elizabeth Warren, a Harvard University law professor. GMAC lost $8.3 billion on its mortgage business last year, which amounted to more than 80 percent of its total net losses, the panel's report said. "We appreciate the panel's responsibility to analyze history; however, GMAC's management team is focused on the future," GMAC said in a statement. "That includes continuing to provide the highest level of service to auto dealers and consumers in support of our auto partners, returning GMAC to a high level of profitability, and repaying the U.S. Treasury." Treasury, in a statement released this afternoon, said, "Treasury continues to be a reluctant shareholder and to manage its investment in GMAC in a hands-off commercial manner consistent with the administration's established principles that guide Treasury's management of financial interests in private firms." As for its past decisions not to restructure GMAC, the federal agency said, "After considerable analysis and deliberation, Treasury viewed the course taken as the least costly and least disruptive of all the options available." The congressional panel found that the government missed chances to increase accountability and ensure repayment of taxpayers' money with its early decisions to rescue GMAC rather than pursue other options as part of a broader auto industry bailout. Treasury has said that it was necessary to support GMAC because of the company's dominant role in floorplan financing and that failure to do so would have undermined the government's investments in the auto industry. In 2006, GM spun its credit arm off into a company that today is the 14th largest bank holding company in the United States.
Congressional Panel Says GMAC Has No Business Plan, Suggests Break Up
More Industry

Price Driving Insurance Churn
Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.
Read More →
AI Drives Dealer Website Traffic
Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.
Read More →
Automakers Tops in Fuel Economy
In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.
Read More →
Report Finds Year-End F&I Strength
Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.
Read More →
Overall Consumer Confidence Up
Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.
Read More →
Auto Loan Forecast Bucks Market Trend
Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.
Read More →
Some Auto Brands Cheaper to Insure
A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.
Read More →
Learn to Manage the Mayhem at Agent Summit
Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.
Read More →
Auto Recalls Sank Last Year
2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.
Read More →
Affordability Leads Top-Rated List
Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.
Read More →
