General Motors Corp. (NYSE:GM) reported this morning before the market open that it actually made a small profit in its last quarter (a reverse from the year-ago period), but still missed analyst forecasts. What this will do to GM shares is something we will see this morning. GM said that there was a large improvement in its core marketplace -- the North American market -- but that the subprime lending mess was hurting its financial arm, GMAC. Here we have a red flag, albeit not a surprising one.

GMAC has been hailed as the savior of GM in many past years as the company continuously lost huge amounts of cash from its automotive unit but made huge amounts of cash from its finance arm (GMAC). GMAC lends money for everything from car loans to full mortgages, so when these overextended mortgage loans like ARMs and interest-only loans became the lend du-jour of the day, of course GMAC did not want to miss out on that lucrative little profit center. The thing is, the in-progress subprime lending implosion will hurt it along with every other lender that was short-sighted into short-term profits at the expense of the financially ignorant consumer.

GMAC is now feeling the heat, though, just as GM's auto operations are staging a stunning comeback from the days of SUV craziness that was reigned in by rising gas prices. In a fast-moving reversal of fortune, GM now has to deal with a steadier auto operations unit to fight back at Toyota Motor Corp. (NYSE:TM) with problems in its finance arm at the same time. This company just can't get a break, but it just asked for this one. GM's net income in the latest quarter of $950 million, or $1.68 per share, was helped by the sale of 51% of its GMAC finance arm. Excluding the sale, EPS came in at $0.32 or $180 million for the quarter -- but analysts were expecting $1.19 per share. To CEO Rick Wagoner: don't let any black cats cross your path soon.