unit, which the firm said is beginning to stabilize.
The results will pressure those of former parent
, which includes its share of GMAC's figures in its data, as the auto maker is also weighed down from restructuring domestic operations in the wake of slumping industry sales.
GMAC is also being pressured by falling used-vehicle prices and the ongoing credit crunch, resulting in the firm this week announcing it will no longer offer subsidized leases in Canada. The company is expected announce curtailments to U.S. leasing offers as well.
GMAC, 51% owned by private-equity firm
Cerberus Capital Management, reported a net loss of $2.48 billion, compared with year-earlier net income of $293 million.
The firm's credit-loss provision surged 79% to $771 million.
ResCap's net loss ballooned to $1.86 billion from $254 million on asset sales. The company noted its U.S. residential-finance business "is beginning to stabilize" as ResCap cuts its balance sheet. Loan production was flat.
ResCap, one of the nation's largest subprime-mortgage lenders, has been struggling to turn around its fortunes as GMAC and its owners deliberate the home lender's future. ResCap lost $4.3 billion in 2007, and GMAC spent much of the year restructuring the firm, including job cuts and an overhaul of the business model. But the losses have continued to mount
GMAC's auto-lending business posted a $717 million loss on the lease write-downs and weaker credit performance. The $30 billion lease portfolio includes about $18 billion on trucks and sport-utility vehicles, resales values of which have been slumping of late and causing lease losses when the vehicles are sold. New financing originations dropped 11% amid lower auto-sales levels.
North American 30-day delinquency rate on managed loans dipped to 2.18% from 2.37% a year earlier and, while loan charge-offs jumped to 1.68% from 1.03%.
