General Motors (GM) has begun its provision of car finance on Vauxhall vehicles, and those of European sister brand Opel, as the company aims to recover depleted sales and operating losses.

Last year GM reacquired the motor finance operation it had sold to Ally Financial in 2006 and will begin offering finance products through GM Financial, branded as Vauxhall Finance in the UK and Opel Financial Services (Opel FS) in seven continental markets.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

In the UK, where Vauxhall is consistently the second-biggest selling marque, Vauxhall Finance has already used GM’s in-house provider to launch the Vauxhall Flexible PCP, although the brand has continued its work with Santander Consumer Finance to provide consumer deals for its national used car programme Network Q.

Best position

Michael Lohscheller, chief financial officer at Opel, said products from Opel FS will include 0% interest and zero deposit schemes and formed "an integral part of our plan to gain market share and return to profitability".

The change to a captive finance operation would provide more cost-effective wholesale finance and refinancing opportunities, in turn making car loans and leases cheaper to provide, the company said.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"Opel was not always in a position to make the best financing offer," said Lohscheller. "We did not have our own bank, like competitors".

Lohscheller estimated the current finance penetration rate on Opel vehicles stood at 40%, below the European market average of 50%, itself below the UK market new-car average which has been running above 66% for the past year.

Q1 losses at GM Europe, which announced last year it would invest $4bn in the launch of 23 models and 13 engines by 2016, totalled $175m (£113m), down from a $294m loss for the same period of 2012.

richard.brown@timetric.com