GM Financial’s net income almost doubled in its first quarter

Article by Christian A., on November 14, 2010

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]

If you liked the article, share on:

Topics: gm, united states

Comments

Recommended

The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries