General Motors Financial CEO Dan Berce said floorplanning, customer loyalty and protection plans are key areas of focus for the captive lender.
The lender's retail finance penetration of more than 50 percent is the highest since the second quarter of 2020, and Berce said he wants to keep that going.
On April 25, the automaker's finance arm posted lower year-over-year first-quarter earnings, down 39 percent to $584 million. Lower lease income, which the automaker said it expected, contributed to the decline.
After earnings were announced, Berce spoke with Staff Reporter Gail Kachadourian Howe about GM Financial's programs and goals for the second quarter. Here are edited excerpts.
On what percentage of U.S. GM dealers floorplan using GM Financial:
Currently, 43.6 percent have taken our floorplan we actively provide.
If GM Financial has any programs to increase that floorplan penetration:
Our goal is just simply to continue to increase our penetration. It's available to every GM dealer. So ideally, we'd have 100 percent. The program really involves a unique value proposition where first of all, they are floorplanning with the captive and so they're part of the whole GM ecosystem. But we also provide benefits for floorplanning with us versus non-floorplanning dealers, whether it's unique programs and rates or abatements.
Or they get to avail themselves of our dealer dividends program whereby if they provide us with a certain number of both new-car finance and used-car finance contracts, they get money back, if you will, for every incremental contract they provide us.
So even though our rate that we provide them outright for floorplanning may be in some cases higher than what they can get from the big banks ... the money from the dividends program they get really drives their debt rate from us below what they can get from a bank.