AP Source: Government moves closer on fresh cash infusion to stabilize auto financier GMAC

AP Source: Gov’t moves closer on fresh aid to GMAC

WASHINGTON — A person with knowledge of the matter says the government is moving ahead on a fresh multibillion dollar cash infusion to stabilize auto financing company GMAC Financial Services.

GMAC, based in Detroit, is instrumental to the operations of automakers General Motors Co. and Chrysler Group LLC. It has already received $12.5 billion in taxpayer money and is 35 percent owned by the federal government.

The person, who spoke on condition of anonymity because discussions weren’t complete, says the new infusion would be in the range of another $3 billion. That would fall short of the roughly $6 billion the government had earlier thought GMAC would need to stabilize the company.

An announcement of the injection is expected to come soon.