GMAC LLC, the financing arm of General Motors Corp. (GM), announced Wednesday measures aimed at bolstering sagging sales of new vehicles while providing cash-strapped dealers some relief.

Increasing limp sales is crucial for GM, which is in the midst of a restructuring, to clear stockpiles of new vehicles sitting in dealership lots. GMAC's offer comes a day after GM - along with rival Ford Motor Co. (F) - announced incentives that go beyond traditional cash rebates and financing deals, in an effort to jump-start sales.

For March, the auto maker reported Wednesday afternoon a 44.7% decline in light vehicle sales from a year ago. GM shares recently traded down 3.5% at $1.87. The stock has lost about 40% of its value this year.

GMAC's move will also benefit the lender as the volume of auto sales determine the amount of loans it originates to consumers and dealers. GM currently owns a 49% stake in GMAC after a group of investors led by private-equity firm Cerberus Capital Management LP, parent of Chrysler LLC, bought 51% of GMAC in 2006 for about $14 billion. But the auto maker will cut its ownership of GMAC to less than 10% next month, as part of conditions attached to GMAC garnering a bank registration in December. The investor group would also have to scale back its ownership. The bank registration rules also dictate that GMAC, which has traditionally provided the bulk of funding to GM's dealers and retail buyers, diversify its business.

"We announced these actions to reduce stress on auto dealers and to help spur auto sales in the U.S.," said Gina Proia, a GMAC spokeswoman. The move will "hopefully get retail credit moving again."

Proia declined to comment on whether the measures announced Wednesday were prompted by the administration of President Barack Obama in its efforts to keep GM afloat. Turning itself into a bank holding company gives GMAC access to federal funds. The lender received a $5 billion infusion from the U.S. Treasury under the Troubled Asset Relief Program after its bank registration.

As part of the measures Wednesday, GMAC cut certain charges to dealers, including payments through April that dealers had to make to the lender on aging unsold new vehicles. The lender also will allow qualified dealers the option to defer interest charges on loans for two 30-day periods during the next 120 days. Typically, dealers use these loans from GMAC to stockpile new vehicles on their showroom floors.

For potential buyers of GM vehicles, GMAC's offer includes reduced rates for new and used vehicle financing. The lender also is entertaining loan requests from buyers with credit scores below 620. The median U.S. consumer credit score is 723. GMAC said it was earmarking $5 billion to lend to consumers in the next 60 days. It will fund these loans from deposits at GMAC Bank and credit from banks.

On Tuesday, GM said it would offer, through April, recourse to buyers who lose their jobs in the first 24 months of ownership. For buyers who lose their income, the auto maker will make up to nine months' worth of payments for up to $500 a month.

These measures "are all aimed at alleviating financial strains associated with holding excessive inventory," said Paul Taylor, chief economist at the National Automobile Dealers Association.

The steps taken Wednesday will also benefit GMAC.

"If GM's sales volume is significantly lower, GMAC's own potential business will shrink considerably," said Christopher Wolfe, an analyst at Fitch Ratings. "It's a symbiotic relationship."

In 2008, GMAC funded 32% of retail sales at GM and provided 81% of the financing to the auto maker's dealers. Prohibitive borrowing costs fueled by the funding freeze in credit markets and losses piling up at GMAC and its mortgage unit forced GMAC to drastically shrink its lending operations last year. To survive, GMAC sought bank registration, which it received on Dec. 24, giving the cash-strapped lender access to federal funds and allowing it to borrow at cheaper rates.

GMAC is also exploring financing options under the government's Term Asset-Backed Securities Loan Facility, or TALF, aimed at reviving lending to consumers. The lender also is awaiting the green light from the Federal Deposit Insurance Corp. to issue cheap FDIC-backed debt. This new debt will refinance GMAC debt maturing this year.

-By Aparajita Saha-Bubna, Dow Jones Newswires; 617-654-6729; aparajita.saha-bubna@dowjones.com

(Mike Barris contributed to this report.)