GM Financial Q1 Net Rises As Lease Volume Skyrockets
Shareholders of General Motors have something to smile about after the company posted a financial Q1 net rise as its parent company General Motors switched to General Motors Financial as leases for its preferred lenders, that is Chevrolet, Buick, Cadillac and GMC were subsidized.
“We increased our penetration of General Motors retail sales in most of our markets,” said Dan Berce who is the CEO in a conference call with Automotive News.
GM reported a net income of $150 million for its first quarter Financial report, that’s an increase of 3% if you are to compare the figures to the one received a year ago, GM said in a statement.
When combined, the car maker’s worldwide financial consumer loan as well as lease originations reached $7.1 billion for its first quarter, that’s an increase of an impressive 70% if we are to compare it with the figure obtained
According to GM financials, Lease originations in Canada and US combined stood at $3 billion for its first quarter, that’s up from an initial figure of $773 million which was posted last year. Leases accounted for 57% of General Motors Financial originations in North America for its first quarter, an increase of 36% if compared to figures which were recorded last year.
According to Berce, the huge increase in leasing which have been recorded took place before General Motors Financial felt the full impact of a policy change which was enforced at parent General Motors.
“Chevrolet did not kick in until the quarter end. The other brands kicked in mid-quarter,” he said.
Back in January, General Motors announced that it would be steering lease incentives for Cadillac and Buick-GMC brands exclusively beginning February and March, respectively. The car maker later added Chevrolet lease incentives.