General Motors Financial Co. bolstered origination volume 6.5%, maintaining the captive’s growth momentum.
The captive originated $13 billion of loans and leases in the quarter, up from $12.2 billion in the prior-year period. The growth comes on the heels of a 14.8% increase in originations in the first quarter. GMF’s loan portfolio totaled $42.6 billion, up 19.6% year over year.
GMF’s penetration rate in the quarter was running in the 45% to 50% range, which “is something we’d like to see continue,” General Motors’ Chief Financial Officer Dhivya Suryadevara said during the call.
Additionally, the captive’s delinquency rate fell 90 basis points year over year, to 3.7% of the portfolio. Net charge-offs dropped 30 basis points to 1.4% of the overall portfolio.
Meanwhile, the Q&A portion of the earnings call this morning was partially focused on the status update of the OEM’s autonomous vehicle service, GM Cruise. General Motors is aiming to “win the tech race and build trust with customers,” company Chief Executive Mary Barra said during the call. On top of that, the OEM is working to gain regulatory approval. “There aren’t impediments,” Barra said. “There’s just more work to be done.” No timeline for the service’s launch was mentioned in the earnings release.
Barra also highlighted initiatives to engage consumers and build trust with the city in which the OEM has chosen to deploy its autonomous vehicle service. “We are working on a marketing campaign to engage the city, so they are receptive to what’s coming,” she said.
GM Cruise received a new equity raise in May of $1.15 billion, boosting its valuation to $19 billion, the company noted.
