GMAC LLC has reportedly cut floorplan financing from about 80 dealers, or 6% of the surviving Chrysler dealerbase. Without floorplan financing, those dealers face daunting prospects, and are likely to fail.
There is no surprise in GMAC’s action. The pseudo-captive is merely behaving like a financial institution should, dispensing risk with care.
What is surprising is that when I wrote how GMAC might not do all the Chrysler financing the White House was saying it would, GMAC gave me grief, saying I was making something out of nothing. Saying that GMAC would blindly finance Chrysler dealers — now that would merit grief from GMAC.
