“The couple of factors that would be headwinds in the second-half are that we're going to have less lease terminations in the second-half, along with expectations for mildly lower used car pricing.”

In context

“anks. My other question was on GM Financial. It looks like you slightly raised the EBIT outlook for the year to $2.75 billion to $3 billion. I think as of the first quarter, you were thinking $2.5 billion to $3 billion. Maybe talk about what's driving the slight uptick in GM Financial. And more broadly on the financial market in auto finance, we've heard and read about some rising delinquencies for the industry more generally. Maybe speak about GM Financial and any change in delinquency rates. Thank you. Dan Berce: Yes. This is Dan Berce. So on the first part of your question with respect to the uptick in the lower end of the guide, we obviously had a strong first-half at GMF earning $1.6 billion, which puts us in a really good position to hit in that range of $2.75 billion to $3 billion. The couple of factors that would be headwinds in the second-half are that we're going to have less lease terminations in the second-half, along with expectations for mildly lower used car pricing. And then the second factor in the second-half is that our credit typically seasonally in the second half is weaker than the first-half, so our provisions will be higher. So that's really the reason for a slightly weaker second half. Now with respect to your question about credit trends, first of all, baseline, our portfolio at GMF is 75% plus prime. And we're seeing very, very steady performance for the prime customer. They still have excess savings. The -- obviously, the job market is strong. And so that piece of our portfolio has been really stable. Now the less than prime, like other lenders, we've seen a bit of deterioration mostly from vintages in 2022 and 2023. More recently, we've seen stabilization, albeit at slightly higher levels. But we've seen stabilization in that part of our”