P&A Providers & Administrators
MenuMENU
SearchSEARCH

GM Financial Completes Transition to Captive in Q1

May 16, 2017
2 min to read


FORT WORTH, Texas — In a scheduled call with investment analysts to announce General Motors Financial Co. Inc.’s first-quarter results, CFO Chris Choate said the process of converting the auto finance company formerly known as AmeriCredit Corp. into GM’s global captive finance company has reached its end.


“Our evolution as a full captive is substantially complete, and we are entering a full captive expansion phase,” Choate said. “… Looking forward, we’re looking to increase our share of prime loan in North America, continue to grow our floorplan strategically, expand our customer relationship management to enhance loyalty and retention.”

Ad Loading...


When GM acquired AmeriCredit in 2010, the auto finance market was in the early stages of a rebound after the Great Recession spurred an industrywide tightening of lending guidelines and access to credit, particularly for subprime and nearprime car buyers. Seven years later, the landscape has changed considerably, but Choate said GM Financial remains focused on prime retail and leasing contracts.


“In the used-vehicle financing space, we have allowed our market share in that space to erode dramatically,” he said. “If you go back over a two- or three-year time period, our presence in that used-vehicle financing space as the market got a little frothier and really became too narrowly priced. … We still have a presence but it’s way down from what it was.”


Choate said the company counted $6.5 billion in sales contracts at the end of the first quarter, compared to $4.1 billion in the year-ago period. Lease originations fell slightly, from $6.8 billion in the first quarter of 2016 to $6.3 billion in 2017.


Focusing on prime credit consumers allowed GM Financial to buck an industrywide trendtoward increased auto loan delinquencies. The share of loans 31 to 60 days delinquent declined from 3.1% in the year-ago quarter to 2.8%, while accounts more than 60 days delinquent fell from 1.4% to 1.2%. Annualized net charge-offs were flat at 1.9%.


All told, the captive’s announced net income for the quarter was $202 million, a marked improvement from the $164 million GM Financial earned in the first quarter of 2016.

Ad Loading...


“As GM has pointed out in their communications over the last year or more GM Financial is a very strategic business. We are very well-positioned for profitable growth and contribution to overall enterprise value,” Choate said. “And GM Financial’s overall objective is to support GM vehicle sales while achieving appropriate risk-adjusted returns.”

Topics:Industry

More Industry

Photo of the back of an electric Mercedes
Industryby Hannah MitchellJune 10, 2026

Auto Prices Ride May Moderation

Flat ATPs and asking prices clocked in below long-term averages for the month, though some segments saw significant price gains, reported Cox Automotive.

Read More →
Photo of white Toyota car in front of dealership
Industryby Hannah MitchellJune 9, 2026

Auto Retail Families Get Out While the Getting’s Good

Kerrigan Advisors’ first-quarter Blue Sky Report shows a sharp uptick in buy-sell deals as more retailers take advantage of handsome values while seeking to escape market risk.

Read More →
daytime, front of car dealership Lexus of Vancouver
Industryby Lauren LawrenceJune 3, 2026

Holman Opens New Lexus Dealership

Located in the heart of Clark County, Lexus of Vancouver features a multi-level showroom, more than 30 service bays, an indoor drive for drop-off and pick-up and a fleet of courtesy vehicles.

Read More →
Ad Loading...
Subwoofer in trunk of car.
Industryby Lauren LawrenceMay 26, 2026

Ownership Priorities are Shifting

A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.

Read More →
Man's hand holding gas pump in fuel tank of white car
Industryby Hannah MitchellMay 26, 2026

Pump Price Jump Calculated

ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.

Read More →
Graphic showing previous week's truck and SUV segment prices
Industryby StaffMay 20, 2026

Black Book: Weekly Market Update

Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.

Read More →
Ad Loading...
Photo of dealership sign with Toyota logo
Industryby Lauren LawrenceMay 19, 2026

Arkansas Auto Group Acquires First Indiana Rooftop

Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.

Read More →
Headshot photo of Antonio Filosa, Stellantis CEO
Industryby Hannah MitchellMay 19, 2026

Stellantis to Dive Into U.S. Lending

The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.

Read More →
Photo of the rear of a new BMW iX SUV
Industryby Hannah MitchellMay 12, 2026

New-Vehicle Prices Rise

With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.

Read More →
Ad Loading...
Graphic of car segments' results the previous week
Industryby StaffMay 12, 2026

Black Book: Weekly Market Update

Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.

Read More →