GM Financial Posts Fourth-Quarter Earnings
General Motor Co.’s captive earned $74.6 million and originated $935 million of loans and $10.7 million of leases in the final quarter of 2010.
By comparison, GM Financial, as the financing unit is called, originated $378.6 billion of loans and no leases in the fourth quarter of 2009. At the time, prior to GM’s acquisition, the company was known as AmeriCredit Corp.
Financing for GM vehicles accounted for 18.1% of originations in 4Q10, compared with 10.8% in 4Q09. At yearend, GM Financial Co.’s portfolio totaled $8.7 billion, down 9.4% from $9.6 billion at Dec. 31, 2009.
Delinquency rates and chargeoff levels improved in the quarter. Year over year, 60-day delinquencies fell to 2.4% from 3.7%, while chargeoffs dropped to 5.5% from 8.9%.
GM Financial’s earnings came on the heels of General Motors Co.’s first full year of profits since 2004.
