General Motors sold off 51% of its interest in the General Motors Acceptance Corporation last year, its financial arm. Yet that remaining 49% interest in GMAC proved to be a big problem for GM's first quarter 2007 financial results. It seems GMAC got into the mortgage business, and had a first-quarter loss of $305 million, causing GM's overall results to go from $602 million in profit in the first quarter of 2006 to $62 million in the first quarter of 2007. GM's 49% stake in GMAC caused it $115 million in loss--and Toyota passed GM for the first time to become the #1 auto manufacturer in the world.
I can't really imagine a $305 million loss. But even more staggering is that this is only about six hundredths of one percent (.061%) of the U.S. government's spending on the war and occupation in Iraq, which is about to exceed $500 billion. (Thanks to Einzige for suggesting the comparison.)
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