NEW YORK — Reviewing Ally Financial's preliminary second-quarter results, SubPrime Auto Finance News discovered its auto originations growth was driven in large part by stronger used originations and leasing volume in the U.S., which spiked 74 percent and 155 percent, respectively.

Overall, total consumer financing originations came in at $12.5 billion, compared to $10.7 billion a year ago. Second-quarter consumer auto originations included $8.1 billion of new, $2.3 billion of used and $2.1 billion in leases.

This compares to the same period of last year when originations included $8.5 billion in new, $1.4 billion in used and about $800 million in leases.

"Additionally, the company continues to generate strong new volume from a diversified mix of auto manufacturers, with diversified originations increasing 118 percent in the U.S., compared to the second quarter of 2010," management noted.

Meanwhile, the company revealed North American consumer originations were $10.3 billion, including $9.5 billion in the U.S. In 2010 during the same quarter, Ally reported consumer originations in North America of $9.1 billion, including $8 billion in the U.S.

As for international originations, which includes a non-consolidated joint venture in China, these came in at $2.3 billion, compared to $1.6 billion in the previous year. Originations in Germany and China climbed 90 percent and 41 percent, respectively, according to Ally.

Brand Penetration

Continuing on, Ally said its average U.S. wholesale penetration for General Motors dealer stock was 79.3 percent, compared to 82.3 percent in the previous quarter and 82.4 percent in the same period of 2010.

U.S. consumer penetration for GM, meanwhile, was 36.5 percent for the quarter, compared to 51.9 percent in the previous quarter and 34.4 percent in the same time frame of 2010.

"As a result of the reduced level of incentives used by GM in the second quarter of 2011, compared to the prior quarter, retail penetration returned to normalized levels," management stressed.

As for Chrysler, Ally's U.S. wholesale penetration for this brand in dealer stock was 68.1 percent for the quarter, compared to 69.9 percent in the previous period and 71.4 percent in the same time frame of prior year.

Ally's U.S. consumer penetration for Chrysler was 30.3 percent, compared to 33.7 percent in the previous quarter and 52.5 percent in the prior year.

Automotive Services Results

Looking specifically at its Global Automotive Services results, this division reported second quarter pre-tax income from continuing operations of $703 million, compared to $795 million a year ago.

North American Automotive Finance, including the U.S. and Canada, saw pre-tax income from continuing operations come in at $559 million, compared to $592 million in the same period of 2010.

"The decrease was driven by the absence of gains from whole-loan forward flow sales as this agreement expired n the fourth quarter of 2010 and a decline in gains on off-lease vehicle terminations. This was partially offset by strong financing revenue due to asset growth and a decrease in loan loss provision due to an improved credit mix and lower consumer credit losses," management explained.

The company's International Automotive Finance division reported pre-tax income from continuing operations of $71 million, compared to $95 million a year ago.

"The results in the second quarter of 2010 benefited from gains on and favorable tax rulings, which did not repeat in the current period. The company's international auto finance footprint currently consists of 15 countries, including the company's five core international markets: Germany, U.K., Brazil, Mexico and its joint venture in China," officials said.

Now, as for its insurance division, which offers more dealer-centric products, including extended service contracts and dealer inventory insurance, this business unit reported pre-tax net income from continuing operations of $73 million, compared to $108 million in the previous year.

"The decline was driven by higher than expected weather-related claims as the U.S has experienced one of the most severe weather years on record. This resulted in the single worst quarter for weather-related losses in the company's history," officials stressed. "Offsetting these losses were realized gains in the investment portfolio."

Overall Ally Results

In its entirety, Ally Financial reported net income of $113 million for the second quarter, compared to $146 million in the prior quarter and $565 million in the same period of 2010.

"We continued to see solid financial results with another profitable quarter, strong capital and liquidity and lower funding costs," explained Michael Carpenter, chief executive officer.

"Our auto franchise continued to hold a leading position and demonstrate growth in key areas, with year-over-year increases in used, lease and diversified consumer originations," he continued.

"We also remained focused on building our deposit base at Ally Bank and recently introduced a number of new products as we strive to offer consumers leading banking products with exceptional customer service," Carpenter added.