WAIT 'TIL THE FIT HITS THE SHAN -- GM IS GONNA GET POUNDED
"A review of the GM's more recent SEC filings, though, indicates that the company has sold vast numbers of vehicles to borrowers who have a high chance of defaulting on their loans. Additionally, the financial condition of many of its dealers has suddenly and seriously deteriorated."
"GM is relying on subprime borrowers far more than its competitors, though. The company's third-quarter financial report informed investors that "88 percent of the consumer finance receivables in North America were consumers with FICO scores less than 620," which is the “less than perfect" credit threshold for the subprime market. Consumer receivables 31 or more days past due, at $1.075 billion, were 34 percent higher than a year earlier. By contrast, Ford's receivables in that same category dropped by 20 percent during this year's first nine months."
"Almost 76 percent of GM's consumer loan portfolio at the end of June, up from 65 percent at the end of 2011, consisted of borrowers who are more likely than not to go seriously delinquent. Though the company's reduced disclosure prevents us from knowing for certain, that percentage was probably higher in September."
Woo-hoo! GM put out their numbers and you longs fell for it! Bad sales galore, baby....wait until they all have to start getting repo-ed. Watch that resale of your new truck or sedan plummet.
And you know they are only making these deals to goose their apparent earnings so Obama can get out of the hot water he's in for doing this stupid bailout in the first place.
Then the whole house of cards falls in, right on YOU GM MORON LONGS.
About a year and a half ago, some industry observers wondered whether General Motors was relying too heavily on subprime financing to sell cars and trucks.
Today those worries have dissipated. GM has reduced its reliance on subprime lending and has brought its use of leasing closer to the level of the overall industry.
A dramatic shift at GM Financial is behind the change.
GM Financial dialed back on its traditional specialty of subprime auto loans this year as it added leasing, wholesale financing and the former international operations of Ally Financial Inc. -- all primarily prime-risk business. And now the company says it expects to add prime-risk loans in the United States in mid-2014.
GM Financial CEO Dan Berce says the company pulled back on subprime rather than sacrifice margins or approval standards in a hypercompetitive subprime market.
"We've chosen to maintain good discipline on both the credit and pricing front, so we've actually forgone a bit of volume to keep our profitability and credit standards where they have been," Berce said last month during a conference call for investors and analysts.
Also in the above article there is a chart that shows Gm Q3 2012 subprime loans at 8.1%, Q3 2013 subprime loans at 7.8%
It also shows the industry subprime loans at 5.7% for Q3 2012 and 6.1% for Q3 2013.