agent Entrepreneur logo
MenuMENU
SearchSEARCH

GM Financial Completes Transition to Captive in Q1

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 ... Read More »

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

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...