In an effort to bring its leasing operations closer to the industry average, General Motors is using new cars, special promotions and a newly acquired captive finance company. For details, GM’s Cadillac brand is rolling out its XTS sedan and ATS compact this summer and its Buick brand is promoting its "Buick Experience" 24-month lease program while captive finance company GM Financial increases its lease business.
According to GM chief executive Dan Akerson, GM Financial has been a great acquisition for the company, as it has led to incremental volume for the carmaker. GM acquired AmeriCredit Corp., a company that specializes in subprime auto loans, in 2010 and then renamed it as GM Financial.
Under GM’s wings, the lending firm has added leasing, dealer commercial lending, incentivized new-car lending and floorplanning to its offerings. GM Financial launched its nationwide leasing last year, following a state-by-state rollout. In the second quarter of 2012, GM Financial almost doubled its lease business as a percentage of total originations to 21 percent, compared with 11 percent in the second quarter of 2011.
GM Financial chief executive Dan Berce disclosed that subprime customers account for around a third of the lender’s US lease customers for the second quarter of 2012, adding that subprime leases represent incremental business for GM. Aside from GM Financial, the carmaker also makes offers through Ally Financial and U.S. Bank.
GM hiked its US lease penetration a bit in the second quarter of 2012, to 15.3 percent of retail deliveries, from 13.5 percent in the same period in 2011. However, GM’s lease penetration figures were still below average for the US industry, which, excluding the carmaker’s, were around 21 percent for the second quarter of 2012.
Jim Cain, GM spokesman divulged last week that the carmaker expects its new Cadillac models and the Buick Experience program to push GM closer to the industry average. The XTS went on sale in June while the ATS will be rolled out this month. Buick Experience leases began in March.
Cadillac unveiled the newest addition to its luxury sedan lineup: the 2013 Cadillac XTS. The new XTS, which will be the most technologically advanced car in Cadillac history, will arrive in showrooms in the U.S. and Canada in spring 2012.
Larger than the Cadillac CTS, the new XTS promises to deliver Cadillac’s signature elegance, space, and dramatic presence, but with technically advanced new methods that have been tuned for a whole new generation of customers. The 2013 Cadillac XTS also introduces CUE, which is a comprehensive in-vehicle experience merging intuitive design and auto industry-first commands and controls for information and for media control.
Aside from the CUE connectivity and interface, many other technologies that are essential to the new Cadillac XTS. It is going to be the only luxury car featuring standard Magnetic Ride Control, which is the fastest-reacting suspension in the world. Also available are advanced technologies that improve safety and vision.
Additionally, the new XTS, which is positioned above the CTS family in the carmaker’s revamped lineup, boasts a 3.6-liter direct injection engine, as well as an advanced all-wheel drive system. This, in turn, marks a shift to a more efficient performance in a luxury sedan.
According to Don Butler, VP of Cadillac Marketing, the new XTS represents a fresh formula for luxury and is driven by advanced technology. What’s more, the sedan showcases the evolution of Cadillac’s Art & Science philosophy, joining together the best technical ideas and the continued refinement of the brand’s design.