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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
January 19, 2005
(Date of report; date of
earliest event reported)
Commission file number: 1-3754
GENERAL MOTORS ACCEPTANCE CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 38-0572512
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
200 Renaissance Center
P.O. Box 200 Detroit, Michigan
48265-2000
(Address of principal executive offices)
(Zip Code)
(313) 556-5000
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition
GMAC 2004 AND FOURTH QUARTER 2004 EARNINGS SUMMARY
General Motors Acceptance Corporation (GMAC) earned a record $2.9 billion in
2004, up from the previous record of $2.8 billion earned in 2003, representing
the 10th consecutive year of earnings growth. These record earnings were driven
by solid results in each of GMAC's three main lines of business - financing,
mortgage and insurance operations. Record earnings were achieved in a difficult
environment that included higher market interest rates, declining mortgage
industry volume and a series of negative rating agency actions. Along with the
earnings increase, GMAC continued to provide global support for the marketing of
GM vehicles, as well as provided a significant source of cash flow to GM through
the payment of a $1.5 billion dividend in the fourth quarter.
Despite unfavorable impacts from lower net interest margins, 2004 net income
from Financing operations increased to $1,476 million, up from the $1,360
million earned in 2003. The increase reflects considerable improvement in
earnings from international operations, lower credit loss provisions, improved
vehicle remarketing results in North America and the impact of favorable tax
settlements.
Mortgage operations earned $1,108 million, a decline of 12% from record earnings
of $1,254 earned in 2003 as residential mortgage industry volumes declined by
approximately 30%. Despite the lower industry volumes, GMAC's Mortgage
operations experienced market share gains, asset growth, improved mortgage
servicing results and an increase in fee-based revenue.
GMAC's Insurance operations generated record net income of $329 million in 2004,
up $150 million from the $179 million earned in 2003. The increase reflects a
combination of strong results achieved through increased premium revenue,
favorable loss experience, and improved investment portfolio performance.
GMAC's consolidated earnings for the fourth quarter of 2004 were $611 million,
representing a slight decline from the record 2003 fourth quarter earnings. For
the quarter, net income from Financing operations totaled $323 million, down
from the $342 million earned in the fourth quarter of 2003. GMAC's Mortgage
operations earned $220 million, up modestly from the $215 million earned in the
fourth quarter of 2003. GMAC's Insurance operations had net income of $68
million in the fourth quarter of 2004, down slightly from the $73 million earned
in the fourth quarter of 2003.
In 2005, GMAC is expected to sustain the recent strong operating results and
will continue to be a significant contributor to GM's financial performance. For
2005, GMAC is expecting to generate net income of at least $2.5 billion and
remit a dividend in excess of $2 billion.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GENERAL MOTORS ACCEPTANCE CORPORATION
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(Registrant)
Dated: January 19, 2005 /s/ SANJIV KHATTRI
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Sanjiv Khattri
Executive Vice President,
Chief Financial Officer and Director
Dated: January 19, 2005 /s/ LINDA K. Zukauckas
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Linda K. Zukauckas
Vice President and Corporate Controller