The “new” General Motors formed GM Financial in 2010 by acquiring subprime specialist AmeriCredit of Fort Worth, Texas. Since then, it has built up the unit by adding floorpan and commercial loans for dealers along with prime-risk retail loans and leases. In 2013, the captive finance arm introduced its services to Europe and South America as a result of acquiring the international operations of Ally Financial (previously GMAC under the “old” GM) for $4.2 billion.
But now, GM Financial’s European auto finance operations have been transferred to PSA Groupe as part of the Opel-Vauxhall sale — significantly downsizing the subsidiary’s footprint. GM and GM Financial began accounting for Opel/Vauxhall as “discontinued operations” at the start of the second quarter of 2017.
Even so, GMF is growing in North America as GM continues to push GM’s services in its dealers while steering retail loan and lease incentives. GM Financial’s net income from continuing operations (in other words, those outside of Europe) was $270 million in Q2 2017, an increase of 89 percent year-over-year. But the unit’s net income fell from $189 million to $62 million for the quarter as a result of a $208 million net loss from discontinued operations.