FORT WORTH, Texas — General Motors Financial is continuing to
generate more subprime paper for its parent automaker, keeping the domestic OEM
above the industry average during the third quarter.

President and chief executive officer Dan Berce indicated the
industry average for new-vehicle subprime financing stood at 6.1 percent in Q3,
and General Motors exceeded that level at 7.8 percent.

Of that third-quarter amount, GM Financial is originating
29.2 percent of that volume, up from 27.6 percent three years ago.

While GM Financial is helping the parent automaker with
contracts for consumers with softer credit, the finance company's third-quarter
overall North American loan volume fell a little short of $1.3 billion, about $200
million less than the same quarter a year ago.

"The shortfall from a year ago is mainly driven by increase
in competitive conditions in the U.S.," Berce said. "Specifically, competition
in the subprime arena is heightened, driving extended loan terms, higher
loan-to-values and reduced pricing in the markets.

"We've chosen to maintain good discipline on both the credit
and pricing front, so we've actually foregone a bit of volume to keep our profitability
and credit standards where they have been," he continued.

Berce elaborated about that strategy during a conference
call with investment analysts when GM Financial reported its third-quarter
performance.

"It's a tough pricing environment. There's pressure on loan
structure whether that's the term of the loan or the loan-to-value. I think
there's an increasing emphasis on speed to get share, meaning maybe cutting
corners in the underwriting process," he said.

"I think that shows up in the fact that we've lost share in
the U.S. We've kind of stayed pretty disciplined, and I think perhaps some
other lenders haven't," Berce continued.

"It's interesting when you look at the market share stats in
the U.S., some of the long-time, maybe bigger, subprime lenders including us
have lost share and some of the newer entrants on to the scene have gained
share. And that's the product of the competitive environment we're in," Berce
went on to say.

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