GMAC posts $2.5 billion loss in 2nd quarter

GMAC posts $2.5 billion loss in 2nd quarter

NEW YORK -- GMAC Financial Services says it swung to a steep second-quarter loss as slumping vehicle sales and a weak credit and consumer environment weighed on its results.

GMAC says it lost $2.5 billion in the second quarter compared with a profit of $293 million in the same quarter last year. It says its Residential Capital LLC lending division's loss widened to $1.86 billion from $254 million.

GMAC also says it took a $716 million impairment charge during the quarter due to slumping vehicle sales and lower used vehicle prices.

Chief Executive Alvaro G. de Molina says volatility in the mortgage and credit markets significantly weakened results for the quarter.

The company is majority owned by private equity firm Cerberus Capital Management but General Motors Corp. still holds a large stake.