Unprofitable GMAC is Dead, Long Live Profitable Ally Financial

It's been two years or so since GMAC's financial statement didn't show any profit. Now it does, but it is too late for GMAC. The financial institution posted net income of $162 million in the first three months of the year, announcing at the same time it will change it's name into Ally Financial.

The company will not return to its roots, GMAC CEO Michael Carpenter said, playing down rumors it may go back under GM's rule.

"We need to move on from that name," Carpenter told DetNews. "The first quarter marks a key milestone in GMAC's transformation, as the company made significant strides toward achieving our strategic objectives."

"We achieved profitability, our premier auto finance franchise continued to expand, the capital markets reopened to GMAC debt, we have reduced expenses, and we took several additional steps to contain and reduce risk in the mortgage business."

GMAC, who is 56.3 percent owned by the US Treasury on account of the $17.2 billion provided as aid, reported a profit in the auto business, and already announced the sale of its European mortgage assets and businesses to Fortress Investment Group.

Last year, GMAC Financial Services announced a net loss of $5.0 billion for the fourth quarter compared to net income of $7.5 billion for the fourth quarter of 2008. For the 2009 full year, GMAC reported a net loss of $10.3 billion, as compared to a net income of $1.9 billion in 2008.