General Motors Financial Co.’s net income nearly doubled in the first quarter (three months through Sept. 30), from to $51.3 million from $25.8 million a year ago. General Motors Co.'s finance unit revealed these figures in a statement last Tuesday. The results included $30 million of after-tax expenses linked to GM's acquisition of the subprime lender.
GM Financial, formerly known as AmeriCredit Corp., said that loan originations rose by 5.8% to $959 million in the quarter from $906 million in the three months ended June 30.
Compared to $229 million recorded for the same period a year ago, loan originations had increased by more than fourfold. GM is deep in its preparations for an initial public offering of up to $10.6 billion in order to cut US and Canadian government stakes in GM.
The carmaker gave an IPO presentation, citing that it had fallen behind its rivals in leasing and securing financing for customers with lower credit scores.
In a presentation to potential investors posted online last week, GM CEO Dan Akerson said that with regards to the GM Financial purchase, a problem was detected and a decision was made swiftly.
In a regulatory filing, the company said that leasing income rose by 39% to $15.9 million from $11.5 million a year ago. Last Sept. 29, GM Financial announced plans to introduce a regional lease pilot program by March. [via autonews - sub. required]