W

G T E M V OP RE E 5 FI HIC NA L NC ES IN G

GM FINANCIAL EMPLOYEE NEWSLETTER FIRST QUARTER 2012 ISSUE 3

A renewed focus on our signature services.

INSIDE

Commercial Lending gears up for U.S. launch Community Investment Annual Report FICO defines new credit profiles

COMMUNITY INVESTMENT ANNUAL REPORT:

A year in review.
Last year was a successful period for GM Financial in many ways. From launching a solid leasing platform in the U.S. to entering Canada, our team members worked diligently to achieve company goals set forth by our leadership team. Throughout the year, team members also excelled within their communities by supporting numerous non-profit organizations. And through Community Investments Signature Events and volunteer opportunities, employees gave a helping hand and made a big impact in 2011. Keep reading to learn about the organizations weve sponsored and how your donations made a difference in the community. March of Dimes GM Financial successfully raised nearly $118,000 for the 2011 March of Dimes campaign. Team members across the company pitched in and donated to this great cause by participating in department fundraisers, silent auctions and more. As springtime rolled around, many team members joined half a million people across the United States by participating in local March for Babies run/walk events. March of Dimes and March for Babies both support community programs that help future moms have healthy, full-term pregnancies. Our corporate and personal donations also help fund research to find answers to those problems that cause and affect premature babies. United Way Last year, GM Financial raised more than $210,000 to benefit this non-profit organization that helps address the needs of local communities. Since 2008, United Way has focused on promoting education, financial stability and health by providing a variety of programs and opportunities for community members. Over the next decade, United Way plans to carry out initiatives in each of its three core areas to improve the stability and wellness of youth and adults across the United States.

How GM Financial and our team members made a difference in 2011

Lending a helping hand to those in need

Through Community Investments Signature Events and volunteer opportunities, employees gave a helping hand and made a big impact in 2011.

Whats your story?

Do you or someone you know at GM Financial have an extraordinary story to share with the company? Send your ideas for a department or team member profile to communication@gmfinancial.com. Submissions will be considered for upcoming publications of GMF 360.

Salvation Army As a holiday tradition, GM Financial employees donated toys, clothing and other essentials to 925 children, seniors and special needs individuals also known as Salvation Army Angels. These individuals were paired with team members as a part of the Salvation Armys Angel Tree program, where angels requested one item they wanted or wished for and one item that they needed. Also in the spirit of the holidays, our team members in Canada donated toys and non-perishable food items to their local Salvation Army. Canadian Cystic Fibrosis Foundation Through the Great Strides Walk, sponsored by the Cystic Fibrosis Foundation, Peterborough employees made a difference by participating and raising money to help find a cure for Cystic Fibrosis, a debilitating illness. This event was one of Peterboroughs Signature Events and as a major sponsor, (Continued on page 8.)

GMF 360 is an official publication of GM Financial. Address correspondence to: GM Financial Communication/GMF 360 801 Cherry St., Ste. 3200 Fort Worth, TX 76102 For information, call (817) 302-7069 or email: communication@gmfinancial.com.

FICO research
(continued from previous page.)

Community investment
(continued from inside cover.) GM Financial contributed more than $17,450. Peterboroughs Spirit team hosted multiple activities around the Centre to promote public awareness and fundraising for the Cystic Fibrosis Foundation, including bowling, miniature golf, bean bag toss, a BBQ lunch and basketball. While GM Financial contributes to many non-profit organizations throughout the year, there are other ways you can become involved in the community. The information below offers additional ways to provide assistance for charities of your choice: Paid Time-Off GM Financial offers full-time team members eight hours of paid time-off to volunteer each quarter. Part-time team members are offered four hours of paid time-off each quarter to volunteer. Dollars for Doers The company also contributes to non-profit agencies where employees choose to volunteer. As part of the Dollars for Doers program, GM Financial donates $5 for every hour, up to 50 hours per calendar year, that team members spend volunteering outside of work hours. Team members wishing to take advantage of this program may select up to two agencies to divide their 50 hours of volunteer time, but must volunteer a minimum of 20 hours per organization to participate. Walk/Run/Cycle All employees will be sponsored (up to $35 each) for two walk/run/cycle events per year. Prior to participating in any community investment activities, be sure to get permission from your manager. Check the Community Investment site on AmeriNet to ensure your volunteer activity meets the guidelines of one of GM Financials programs. Dont forget to report your volunteer time as well. Also, dont miss out on Community Investments 2012 Signature Events and volunteer opportunities. Your time and talents are appreciated as you represent GM Financial and yourself in the community. For more volunteer opportunities and information, please visit the Community Investment site on AmeriNet.

Key Findings
So how much did U.S. consumer behavior change during the study period? According to the study, not as much as previously thought: Consumer risk score distribution, at a national level, remained relatively stable. The segments with the most change were the Fallen Angels and the Rising Stars, which represent only 4 percent or 7.3 million consumers. The Fallen Angels struggled the most to pay mortgages and other debt, which was indicated by the 150 point drop in scores. Many high-scoring consumers became even more conservative in their spending behavior by paying down their existing debt and avoiding new debt, thereby increasing their scores. Overall, approximately three million consumers substantially improved their creditworthiness. While default rates worsened in most score bands during the economic downturn, a majority of Americans continued to pay their bills. Their scores remained high or improved, balancing out the downward pull on the national score distribution caused by people undergoing financial hardship. Two distinct phases in consumer credit risk were noted. From 2005 to 2008, there was a movement out towards the two extremes of the score range. The 300-499 and 800-850 score band gained additional consumers. From 2008-2011, score distributions moved away from the ends of the range. The 550599 and 600-649 bands the bands in the middle gained consumers during this time. Recent improvements in credit card delinquencies were driven less by consumer behavior and more by tightening of credit policies by lenders. Lenders have reduced credit limits by $10,000 on an average consumer since 2008, which causes consumers to stop using credit cards. Lenders granted new credit to a smaller select group of consumers. At all FICO score levels, lower spending is the most striking change in consumer behavior.

Commercial Lending
(continued from page 5.) rate or the rate we charge for floorplan financing is not tied to the number of retail or lease deals they send to us, which is a common practice among other lenders that offer commercial financing, said Brian Stratton, vice president Business Development, Commercial Lending Services. He was among the team that represented GM Financials Commercial Lending program in the General Motors booth at the annual National Automobile Dealers Association (NADA) convention in Las Vegas. Joe Buslow, senior vice president of Sales in Dealer Services, agrees, Overall, the GM dealers we spoke with expressed a lot of satisfaction in what GM Financial has been able to offer so far since the acquisition and they are interested in expanding their relationship with us. The departments goal through the remainder of 2012 is to establish sufficient scale in the platform to obtain operating efficiencies. The Dealer Services Sales team will be at the forefront of creating excitement and awareness about the program to their dealers. DRMs were trained at the Sales Rally last fall on the details of the program and how to inform dealers about it. Execution is critical. When we go to market, we want to do it right, said Fallon.