The U.S. flag flies at the Burt GM auto dealer in Denver June 1, 2009. (Xinhua/Reuters, File Photo) Photo Gallery>>>

    WASHINGTON, Dec. 30 (Xinhua) -- The U.S. government announced on Wednesday that it will provide 3.8 billion dollars of new capital to help ailing auto and mortgage giant GMAC.

    "Treasury will commit 3.8 billion dollars of new capital to GMAC rather than the 5.6 billion dollars originally announced," said the Treasury in a statement.

    Prior to Wednesday's actions, Treasury had invested 12.5 billion dollars in preferred stock of GMAC.

    Treasury now owns 13.1 billion dollars in preferred stock in GMAC, through purchases and the exercise of warrants, and 35 percent of the common equity in GMAC.

    GMAC, which provides financing for GM and Chrysler and their customers, lost 5.3 billion dollars in the first nine months of 2009, as demand for cars remained tepid and previous loans continues to go sour.

A man runs by a Saab 9-3 at the Mike Shaw Saab dealer in Denver, Colorado December 30, 2009. (Xinhua/Reuters Photo) Photo Gallery>>>

    The new capital will likely allow GMAC to avoid placing its ailing mortgage unit, Residential Capital LLC, or ResCap, into bankruptcy, and help the Detroit-based finance company return to profitability in the first quarter of 2010, according to some economists.

GM makes first payment of $1 bln to federal gov't

    CHICAGO, Dec. 18 (Xinhua) -- U.S. automaker General Motors made its first payment of 1 billion U.S. dollars toward its 6.7 billion dollars in outstanding U.S. government loans on Friday, 13 days ahead of schedule, the company said in a statement.

    GM's Chairman and CEO Edward Whitacre Jr. also announced that GM had paid 192 million dollars, the company's first installment on its Canadian loans. Full story

GM to axe 9,500 jobs in Europe

    BERLIN, Nov. 25 (Xinhua) -- U.S. car giant General Motors (GM) is to cut up to 9,500 jobs in its Opel workforce in Europe, GM's new chief executive for Europe Nick Reilly said here on Wednesday.

    Reilly, speaking at the interval of his meetings with German political and labour leaders, said GM will keep open all its Opel plants in Germany, but the job cuts should be carried out. Full story

GM loses $1.15 bln in third quarter

    CHICAGO, Nov. 16 (Xinhua) -- U.S. automaker General Motors Co. said on Monday that it has lost 1.15 billion dollars since emerging from bankruptcy on July 10.

    By announcing third-quarter results, GM gave the public its first comprehensive peek at the automaker's finances since it emerged from bankruptcy with about 50 billion dollars in federal aid. Full story

U.S. automaker GM gets federal grant to convert engine heat

    CHICAGO, Oct. 27 (Xinhua) -- U.S. automaker General Motors Co. received a 2.6 million federal grant on Monday to develop technology that will let the automaker convert waste heat from car engines into electricity, and boost vehicle efficiency.