GM Financial
| Company type | Subsidiary |
|---|---|
| Industry | Financial services, Automotive financing |
| Predecessor | AmeriCredit Corp. |
| Founded | 1992 (as AmeriCredit Corp.) |
| Headquarters | Fort Worth , United States |
Area served | United States, Mexico, Latin America, Canada, China |
| Products | Retail loan and lease services, commercial lending, insurance services |
| Owner | General Motors |
| Parent | General Motors |
General Motors Financial Company, Inc. serves as the financial services branch of General Motors, delivering automotive financing solutions throughout United States, Mexico, Latin America, Canada, and China. Its European business was divested to PSA Groupe and BNP Paribas after GM sold Opel and Vauxhall Motors in a transaction valued at $2.2 billion. The company’s headquarters are located in Fort Worth, Texas, where it stands as the largest employer in the downtown area.
Originally established in 1992 under the name AmeriCredit Corp., the firm was purchased by GM in October 2010 and subsequently rebranded as General Motors Financial Company, Inc. It provides retail loan and lease services through automotive dealers, accommodating customers with a wide range of credit profiles. Beyond consumer financing, GM Financial also offers commercial lending products such as retail floorplan financing, construction loans, real estate financing, and insurance services tailored for car dealerships.
Before becoming part of GM, AmeriCredit held the 768th position on the Fortune 1000 list.
Acquisition by General Motors
In July 2010, General Motors announced its intention to acquire AmeriCredit through an all-cash transaction valued at approximately $3.5 billion. This acquisition was designed to establish a new financial division to succeed GMAC (now Ally Financial), which GM had lost control of in 2006. Following approval from shareholders, the company was officially renamed "GM Financial" on October 1, 2010.
On September 4, 2014, GM and GM Financial entered into a support agreement that outlined leverage limits and liquidity requirements. Under this agreement, GM pledged to provide funding if GM Financial’s earning assets leverage ratio surpassed certain thresholds. Additionally, GM extended an intercompany revolving credit facility worth $1 billion, replacing a prior $600 million credit line. The arrangement also guaranteed GM Financial’s continued status as a subsidiary borrower on up to $4 billion of GM’s corporate revolving credit facilities.
Since joining GM, GM Financial has increased its share of the company’s business substantially and now handles 75% of all consumer loan and lease originations for GM.
Credit rating agencies have acknowledged GM Financial’s financial health: on August 11, 2020, Standard & Poor’s upgraded both GM and GM Financial from negative to stable outlooks while maintaining a BBB issuer credit rating. Earlier, on June 18, 2015, Fitch Ratings elevated both entities to BBB− with a stable outlook.
General Motors Insurance
Established in 2021 as a subsidiary of GM Financial, General Motors Insurance quickly expanded its presence across the United States. The company strengthened its leadership team by hiring seasoned executives from Elephant Insurance, Allstate, and Nationwide Insurance.
International operations
In April 2011, GM Financial expanded its Canadian footprint by acquiring FinanciaLinx, a leading independent leasing firm in Canada. FinanciaLinx continues operating as a subsidiary under GM Financial.
In November 2012, the company purchased Ally Financial’s international assets, which included operations throughout Europe and Latin America as well as a 40% equity stake in a Chinese joint venture with SAIC Motor. Most of these assets were integrated by 2013, with the remaining interest in China being finalized in January 2015.
Following General Motors’ $2.2 billion sale of Opel and Vauxhall Motors in March 2017, GM Financial divested its European operations to Groupe PSA and BNP Paribas.
Industrial loan charter
In November 2020, GM Financial initiated discussions with regulatory authorities regarding the establishment of an industrial loan company, aiming to broaden its auto-finance operations by integrating commercial and banking functions.