General Motors Financial (ACF)

Risks

• The profitability and financial condition of our operations are dependent upon the operations of our parent, GM.
• We operate in a highly competitive industry, and competitive pressures could have a significant negative effect on our pricing, market share and operating results.
• Our profitability is dependent upon retail demand for automobiles and related automobile financing and the ability of customers to repay loans and leases, and our business may be negatively affected during times of low automobile sales, fluctuating wholesale prices and lease residual values, and high unemployment.
• Defaults and prepayments on loans and leases purchased or originated by us could adversely affect our operations.
• Our operations are heavily reliant on automotive dealers, and our profitability could be adversely affected by a change in dealers’ relationships with us or in their financial condition.
• Our ability to continue to fund our business and service our debt is dependent on a number of financing sources and requires a significant amount of cash.
• Our substantial indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations under existing indebtedness.
• Our hedging strategies may not be successful in minimizing risks from unfavorable changes in interest rates and foreign currency exchange rates.
• Our operations outside the U.S. expose us to additional risks.
• We do not control the operations of our investments in joint ventures, and we are subject to the risks of operating in China.
• The COVID-19 pandemic and its impact on the global economy may disrupt our business and operations, which could materially adversely impact our business, financial condition, liquidity and results of operations.
• Our enterprise data practices, including the collection, use, sharing and security of the Personal Identifiable Information of our customers, employees and suppliers, are subject to increasingly complex and restrictive regulations in all key market regions.
• Compliance with laws and regulations can significantly increase our costs and affect how we do business.
• We could be materially adversely affected by significant litigation, governmental investigations or other proceedings.
• Climate related events and climate change legislation could adversely affect our operations.
• We may incur additional tax expense or become subject to additional tax exposure.