GMAC Turns Fourth-Quarter Profit of $7.5 Billion

By: • Tue, Feb 3 2009, 9:22 AM

The financing arm of General Motors managed to turn a profit in the fourth quarter, as a result of a debt-exchange program that allowed it to raise capital and ride out a collapse in auto sales.

GMAC Financial Services earned $7.5 billion in Q4 after a loss of $724 million in the same quarter a year before. Revenue more than tripled to $11.42 billion from $3.29 billion, the company said.

The financing arm of GM said conditions have improved since the U.S. government approved its application to become a bank holding company last month.