Front Office: A message from Kyle Birch
Published June 22, 2012
Dear GM Dealer,
GM Financial started off 2012 with a strong first quarter. We had approximately $1.8 billion
in new loan and lease originations and earned $112 million in net income, giving us a solid
foundation for the remainder of the year. About 30 percent of new vehicle originations were for GM
vehicles, and GM's subprime loan penetration of 8.2 percent for the quarter increased from 6.1
percent a year ago, and is well above the industry average of 6.0 percent. U.S. lease origination
volume increased to $272 million from $183 million last quarter. The increase in our lease
volume is consistent with our strategy of building and maintaining a lease platform with sufficient
scale to support our GM dealer customers.
In April we held our first GM Financial Dealer Council meeting of 2012. The purpose of this forum
is to meet with a mix of GM dealers from across the country and GM management to help us gather
information which will help GM Financial prioritize our efforts as we look to improve our relationships
with dealers nationwide. As a result of hearing from you, we are now working on improving response times,
developing end-of-lease communications and continuing to focusing on making GM Financial the preferred
auto finance partner for all GM dealerships.
We look forward to communicating more information about these initiatives throughout the year.
EVP Dealer Services
*As used in this article, "loans" include retail installment sale contracts
originated by dealers and purchased by the company.