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GMAC'S 1991 EARNINGS EXCEED $1 BILLION FOR SEVENTH CONSECUTIVE YEAR

 GMAC'S 1991 EARNINGS EXCEED $1 BILLION FOR SEVENTH CONSECUTIVE YEAR
 DETROIT, Feb. 24 /PRNewswire/ -- General Motors Acceptance Corporation's 1991 consolidated net income totaled $1,370 million, an increase of $180 million, or 15 percent, from 1990 earnings of $1,190 million, GMAC Chairman John R. Edman announced today. The year 1991 marks the seventh consecutive year GMAC has earned more than $1 billion.
 The 1991 earnings, which include the results of GMAC's financing, insurance and mortgage operations, reflect the cumulative effect on income related to the implementation in 1991 of the new Statement on Accounting for Income Taxes (SFAS No. 109), which favorably affected net income by $332 million. The 1991 results also comprehend the adverse effect of a special wholesale loss provision recorded in the fourth quarter amounting to $171 million after taxes. Excluding the impact of this loss provision and the cumulative effect of SFAS No. 109, net income totaled $1,209 million, an increase of $19 million over 1990 and the second-highest earnings in GMAC history. The favorable variance reflects improved insurance and mortgage banking results as well as widening net interest margins, partially offset by lower earning asset levels.
 Net income from financing operations totaled $1,165 million for 1991 compared with $1,045 million in 1990. Insurance operations contributed a record $205 million in 1991, 41 percent higher than last year, reflecting the cumulative effect of SFAS No. 109, improved underwriting results on automobile and mechanical insurance coverages and higher capital gains.
 The total cost of borrowed funds in the United States averaged 7.66 percent in 1991 compared with 8.57 percent last year. This decline was primarily due to the favorable trend in market interest rates during 1991. Short-term borrowing costs in the United States decreased dramatically for the year averaging 6.11 percent, down 193 basis points from 8.04 percent in 1990. Medium- and long-term money costs averaged 8.93 percent, 14 basis points below 1990. In December 1991, GMAC Auto Receivables Corporation sold $1.8 billion of retail installment sale contracts to investors, which brought the total of 1991 sales to $4.3 billion. GMAC continues to service these receivables and retains a subordinated interest in the pools.
 During 1991, GMAC financed or leased 1,710,000 new vehicles in the United States, 363,000 fewer than in 1990. GMAC financed or leased 35 percent of new General Motors cars and trucks sold in the United States during 1991 vs. 37 percent a year ago. GMAC's 1991 penetration was achieved despite aggressive bank competition for higher-quality consumer loans. Outside the United States, 572,000 new vehicles were financed or leased by GMAC, down 44,000 units from a year ago. The decrease was primarily the result of a decline in GMAC of Canada's retail penetration, following cessation of major factory-sponsored rate incentive programs in that country.
 Leasing volume in the United States, primarily acquired under GMAC's retail SmartLease program, totaled 195,000 units for 1991 compared with 105,000 units a year ago.
 Retail installment and lease financing contracts purchased worldwide totaled $35.7 billion for the year 1991, down $8.0 billion from the corresponding 1990 period.
 Worldwide, delinquency and repossession rates on retail and lease accounts remained within acceptable levels during 1991. Accounts past due over 30 days averaged 2.65 percent of units outstanding in 1991 compared with 2.46 percent in 1990. The repossession rate for new vehicles averaged 2.3 percent, unchanged from a year ago, while the rate for used vehicles declined to 3.1 percent from 3.3 percent in 1990. The total number of repossessed vehicles declined to 193,000 units in 1991 from 209,000 in 1990.
 The average term of a new car contract in 1991 was 53 months, unchanged from 1990, while the average monthly payment increased to $289 from $281 in 1990.
 At Dec. 31, 1991, the company's earning assets totaled $101.0 billion, compared with $103.5 billion a year earlier. Total finance receivables outstanding were $78.7 billion, down from $89.7 billion, and retail and lease receivables outstanding totaled $60.3 billion, compared with $72.5 billion last year. The lower receivables levels primarily reflect the reduced level of auto sales in 1991, the sale of $4.3 billion of retail auto receivables during the year, and the maturity of contracts purchased in the record volume years of 1986 and 1987 as a result of special 2.9 percent and 1.9 percent low- rate factory incentive programs.
 -0- 2/24/92
 /CONTACT: Lynda A. Kosinski of GMAC, 313-556-1022/
 (GM) CO: General Motors Acceptance Corporation ST: Michigan IN: AUT FIN SU: ERN


SB-SM -- DE016 -- 1779 02/24/92 10:03 EST
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Date:Feb 24, 1992
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