Car Care Products

General Motors finance arm is to shut down its Australian business, costing 185 jobs and putting a question mark over the operation of about 400 car dealers nationwide. GMAC, which has operated in Australia since 1926, will close by the end of the year and wind up its local loan book, worth over $2.5 billion.

The following day GE Money announced it was pulling the plug on its car finance operations. GE will shed about 335 jobs in the process.

Together, the two companies provided finance for more than half of all dealerships in NSW. The dealers rely on the finance to buy their stock, and also to provide easy credit to customers.

GE Money is also pulling out of mortgage lending and small business finance in Australia and New Zealand with its parent company, the world’s third largest, blaming rising costs and a plummeting share price brought on by the credit crunch.