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FORT WORTH, Texas — Sparked by jumps in both loan and lease originations
especially in the subprime sector, General Motors Financial posted a
year-over-year net income gain of more than 50 percent, according to its
first-quarter financial statement revealed earlier this week.

The company determined its net income came in at $112
million for the quarter ended March 31, up from the year-ago period when it was
$77 million.

"Our strong first-quarter results provide a solid foundation
for the year ahead," GM Financial president and chief executive officer Dan
Berce told investors when the company shared its results.

Loan Origination Discussion

GM Financial tabulated that its Q1 loan originations moved
up from $1.2 billion to $1.4 billion. The increase left the company's outstanding
balance of finance receivables at $10.0 billion as of March 31.

"The percentage of loans for new GM vehicles remained steady
at around 30 percent of total loans originated for the quarter," Berce
explained. "GM's current subprime loan penetration of 8.2 percent has increased
from 6.1 percent a year ago and is well above the industry average of 6.0
percent, underscoring our progress in supporting this segment of GM's customer
base."

The company determined average APRs for loans originated
increased slightly to 14.7 percent for the first quarter, compared to 14.4
percent for the fourth quarter of last year.

"Key loan structure metrics such as loan-to-value and the
weighted average custom score of the loans we originated have remained
consistent over the same period," Berce emphasized. "The origination growth
that we saw this quarter and that we expect to see going forward results from
market expansion as the auto industry experiences increased consumer demand."

GM Financial mentioned originations from non-GM dealers have
continued at a steady rate comprising more than 50 percent of the company's
total loan originations in the first quarter.

"This important part of our operation is benefitting from
our renewed focus on the AmeriCredit product through the dedicated salesforce
and underwriting teams for non-GM dealers that we introduced last quarter,"
Berce stated.

Lease Origination Highlights

The company discovered its first-quarter lease originations
of GM vehicles totaled $384 million, up from the fourth quarter of last year
when the figure was $314 million as well as the year-ago period when it came in
at $311 million.

Breaking down the leasing activity further, GM Financial
indicated its first-quarter U.S. lease origination volume increased to $272
million from $183 million in the most recent quarter.

"This sequential increase in our lease volume is consistent
with our strategy of building and maintaining a lease platform with sufficient
scale to support our GM dealer customers," Berce noted.

Meanwhile, the company found its first-quarter Canadian
lease originations totaled $112 million, down from the most recent quarter when
the company generated $131 million in leases.

"While we have contributed to significant increases in GM's
lease penetration since entering Canada in April of last year, the competitive
environment has shifted in favor of retail loan products, negatively impacting
our Canadian lease origination levels," Berce acknowledged.

"We anticipate adding a retail loan offering to our Canadian
product suite in the second half of 2012, principally targeting subprime consumers
purchasing new GM vehicles," he shared.

Portfolio Performance

Moving along with its first-quarter report, GM Financial
determined its finance receivables 31-to-60 days delinquent stood at 3.2
percent of the portfolio as of March 31. That reading improved from the same
point a year earlier when it settled at 3.8 percent.

The company said accounts more than 60 days delinquent also improved,
dropping from 1.5 percent a year ago to 1.2 percent of the portfolio on March
31.

"The credit performance of our loan portfolio continues to
set new company records," Berce declared. "Annualized net credit losses for our
loan portfolio were 2.5 percent for the March quarter — the best March quarter
result in our history — improving from 3.3 percent last quarter and 4.0 percent
a year ago.

"Additionally, we are experiencing seasonal improvements in
delinquency metrics that should lead to even better credit loss results in the
June quarter," he projected.

GM Financial highlighted that recovery rates on repossessed
vehicles came in at 59 percent for the first quarter — also the best in company
history.

"Used-vehicle values remain strong due to the continued
imbalance between the demand for and supply of used vehicles," Berce said. "Going
forward, we expect used vehicle pricing to fluctuate seasonally but remain firm
throughout the year."

The company said its provision for loan losses was 2.0
percent of average post-acquisition finance receivables for the first quarter,
compared to 1.8 percent for the fourth quarter of last year.

GM Financial added its allowance for loan losses decreased
slightly to 3.3 percent of ending post-acquisition finance receivables as of
March 31, compared to 3.4 percent at close of 2011.

"Over time, we expect our allowance to migrate up to
historical levels as the post-acquisition portfolio seasons and credit trends
normalize," chief financial officer Chris Choate stated.

"Credit performance of our pre-acquisition portfolio has
continued to be strong, similar to the performance of our post-acquisition portfolio,"
Choate continued.

Berce also touched on lease performance before adding his
thoughts about how GM Financial's portfolio might perform going forward.

"Our lease portfolio continues to perform in-line with the
prime quality of our lease customer base with approximately two basis points of
30-day delinquency at March 31," he noted.

"While a confluence of favorable events supported our
exceptional credit performance, we do not expect them to continue indefinitely,"
Berce stressed. "These tailwinds – improvements in how consumers manage their
credit and the strength of the used vehicle market – can and will shift over
time. Changes in these macroeconomic factors, coupled with expansion of our
credit risk appetite from 2010 through mid-2011, will likely temper the
strength of our portfolio credit performance over time."

Update on Dealer Services and Industry Standing

Berce also shared an update about GM Financial's other
services such as dealer floor planning and more.

"We introduced our suite of commercial lending products for
GM dealers shortly after quarter end, funding our first dealer floor plan loan
in mid-April," Berce recapped. "Our pipeline of dealer applicants is building
and we anticipate steady growth in this business line over the next few
quarters."

Last summer, GM Financial confirmed that it planned to give
franchise dealers a choice for new inventory floor planning besides Ally
Financial with the intention of having at least a pilot program for floor
planning in place by the end of the year.  

"As a reminder, our goal with respect to commercial lending
is similar to U.S. leasing — to build a platform with sufficient scale to
support GM dealer customers and provide relevant, competitive alternatives to
existing marketplace offerings, but not to be the dominant market player,"
Berce stressed.

The top GM Financial executive also delved into the company's
position in the subprime industry

"With respect to competition, we continue to maintain a
leading share of the subprime loan financing market for new vehicle purchases
in GM dealerships," Berce reiterated.

"Away from our new GM dealer business, we have seen some
expansion of credit risk appetite from existing subprime lenders and capital
formation from new subprime lenders seeking to take advantage of favorable
funding and credit performance metrics in the auto finance market," he
continued.

"This market activity has been rational and consistent with
growing vehicle sales volume and related consumer demand for subprime loans,"
Berce went on to say. "Even with growing competition, we have thus far been
able to increase our volume of non-GM business and hold our market share, while
maintaining stable net interest margins and key loan structure metrics as I
discussed previously."

Other Notes from Financial Statement

GM Financial mentioned a few other items in its latest
financial report, stating it had total available liquidity of $1.9 billion as
of March 31. That figure consists of $609 million of unrestricted cash,
approximately $1.0 billion of borrowing capacity on unpledged eligible assets
and $300 million on a line of credit from GM.

"Our core subprime loan business continues to generate solid
margins with stable yields and favorable cost of funds," Choate highlighted. "Additionally,
we are also realizing incremental earnings, albeit at a lower margin, from our
lease portfolio. Average earning assets for the quarter were 10.8 billion
dollars, compared to 10.3 billion dollars last quarter.

"We continue to receive strong support from our bank lending
partners," he emphasized Our $2 billion master warehouse facility, which we use
for U.S. retail loans pending securitization, will renew this month and we
expect to increase the size of this facility modestly in light of increasing
origination levels.

"Also, over the next few months, we will be renewing and
possibly upsizing our Canadian lease facility and adding a new facility to
support our commercial lending business," he went on to say.

Choate pointed out GM Financial's leverage increased
slightly to 3.8 times managed assets to tangible equity as of March 31. But he
said the reading remains well below the company's target leverage range of 6 to
8 times.

"A byproduct of our exceptional credit performance is strong
cash generation and working capital formation — strong enough, in fact, to
support our growth and the deployment of our lease and commercial financing
products without incurring significant incremental debt," Choate highlighted.

"Given our substantial liquidity position and our targeted
origination plans for the next several quarters, we do not currently expect to
access the unsecured debt markets in 2012," he continued. "As discussed in
previous earnings calls, we are not aware of any intentions by GM to take
dividends or otherwise remove capital from GM Financial.

Moody's Upgrades AmeriCredit Subprime Auto Loan ABS from 2011

In related news announced this week, Moody's Investors
Service upgraded, 12 subordinate tranches from three 2011 subprime auto loan
transactions sponsored by AmeriCredit Financial Services.

Complete rating actions are as follows:

Issuer: AmeriCredit Auto Receivables Trust 2011-1

—Class B, Upgraded to Aaa (sf); previously on Feb. 6, Aa1 (sf)
Placed Under Review for Possible Upgrade

—Class C, Upgraded to Aaa (sf); previously on Feb. 6, Aa3 (sf)
Placed Under Review for Possible Upgrade

—Class D, Upgraded to Aa3 (sf); previously on Feb. 6, Baa1
(sf) Placed Under Review for Possible Upgrade

—Class
E, Upgraded to A3 (sf); previously on Feb. 6, Ba1 (sf)
Placed Under Review for Possible Upgrade

Issuer: AmeriCredit Automobile Receivables Trust 2011-2

—Class B, Upgraded to Aaa (sf); previously on Feb. 6, Aa1 (sf)
Placed Under Review for Possible Upgrade

—Class C, Upgraded to Aaa (sf); previously on Feb. 6, Aa3 (sf)
Placed Under Review for Possible Upgrade

—Class D, Upgraded to Aa3 (sf); previously on Feb. 6, Baa1
(sf) Placed Under Review for Possible Upgrade

—Class E, Upgraded to A3 (sf); previously on Feb. 6, Ba1 (sf)
Placed Under Review for Possible Upgrade

Issuer: AmeriCredit Automobile Receivables Trust 2011-3

—Class B, Upgraded to Aaa (sf); previously on Feb. 6, Aa1 (sf)
Placed Under Review for Possible Upgrade

—Class C, Upgraded to Aaa (sf); previously on Feb. 6, Aa3 (sf)
Placed Under Review for Possible Upgrade

—Class D, Upgraded to Aa3 (sf); previously on Feb. 6, Baa1
(sf) Placed Under Review for Possible Upgrade

—Class E, Upgraded to A3 (sf); previously on Feb. 6, Ba1 (sf)
Placed Under Review for Possible Upgrade

"The upgrades were driven by a downward revision of collateral
pool net loss expectations," Moody's analysts explained.

"In addition the mezzanine tranches benefit from a buildup
of credit enhancement due to the sequential pay structure," they continued. "The
reductions are a result of improved performance due to stronger underlying
borrower credit relative to pre-2009 vintages and a healthy used vehicle market
that has increased recoveries on repossessed vehicles."