Q: What are GM Financial's goals for 2017?
A: Berce: Our biggest goals would be [to] keep building our floorplan and share. We're at over 15 percent now, so there's a lot of opportunity to grow that share quite a bit more. I'd say the other [goal], on the origination front, is getting our share of the nonsubvented loan business up. We're exclusive for lease and exclusive for subvented loans, but we're obviously competing with every other player for standard business. In today's low-interest-rate environment, subvented loan is really at record low levels of all the loan business being done. So for us to get over 50 percent of GM's sales, we have to get more of the standard business.
We have a lot of initiatives on the customer-experience front. One of our purposes as a captive is to generate loyalty and retention through great customer service and lead generation. So we've got a lot of initiatives alongside GM on that front.
Hollandsworth: Beyond that, it's taking some of those initiatives that [Berce] referred to, the customer experience [and the] tools that we're putting in place to generate leads for dealers. It's really taking all the inventory that we have available now through our dealer source site and illustrating the expanded picture of what it means to be a captive.
What are GM Financial's biggest accomplishments of 2016?
Hollandsworth: It was completing what I would say is our evolution into becoming a captive, which was when the manufacturer entrusted us with exclusivity of subvented APR business. That kind of marked the end to the bank-partner model that they previously employed. We took over exclusivity for leasing [in 2015] and then at the beginning of 2016 for loan. To me that was a big accomplishment in that we proved that we were capable and delivered results and left both GM and the dealers confident that we were worthy of that opportunity. Now it's about bringing the whole value proposition together and selling that to the dealer to understand why it's not just all about the loan and the lease. It's about the other products that we bring to both dealers and customers.
Berce: The other thing that we're proud of is that as a relatively new captive, we're achieving industry leading levels of loyalty for customers who either get a loan or lease through us. We think we can do better, but we're starting from a really good spot in 2016. GM recently won top honors at IHS Markit's Loyalty Awards for the second year in a row. As GM's captive, we believe we play an important role in GM's customer-loyalty story. When a customer finances with GM Financial rather than a third-party lender, GM's loyalty rate is positively impacted. Together, GM and GM Financial are working toward shared goals to keep the GM family strong, with unwavering focus on our dealers' success and driving customer retention through remarkable customer experiences.