> GM sells its profitable lending arm for $10.4b

> By Micheline Maynard in Detroit
> April 5, 2006
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>
> THE board of General Motors has expressed support for Rick Wagoner, the
> company's chief executive, as GM announced a long-expected deal to sell a
> majority stake in its financing arm, GMAC, for $US7.4 billion ($10.4
> billion).
>
> It marked the board's first public comment on Mr Wagoner since a spate of
> recent bad news but analysts said it did not indicate unconditional backing.
>
> Indeed, accounting errors prompted a board investigation two weeks ago after
> one error forced GM to increase its losses in 2005 by $US2 billion to $US10.6
> billion.

>Sales continue to fall, GM recording a sharp drop nationwide in March,
>despite pitches for consumers to take advantage of the latest deals.

> GM's "March Madness" promotion did little to end the slowdown in sales, while
> incentives at Ford and Chrysler also seemed to do little to lift overall
> results.

> Total sales at GM fell 14.4 per cent in March, in part because a successful
> promotion led to abnormally high sales in March 2005. GM is also weaning
> itself off sales to car rental companies. Ford's sales fell 4.5 per cent;
> Chrysler posted a 1.6 per cent increase.

> The GM board on Sunday approved the sale of the 51 per cent majority stake in
> GMAC to a group of investors led by Cerberus Capital Management. The
> consortium also includes Citigroup and Aozora Bank of Japan.