DETROIT -

Coming off a quarterly performance where the finance company’s total originations of loans and leases jumped higher than any quarterly figure the company posted in the past year, General Motors and General Motors Financial entered into a support agreement on Thursday, reaffirming what executives described as the critical role GM Financial plays in the parent automaker’s success.

The companies explained that this agreement provides for leverage limits and liquidity support to GM Financial if needed, as well as other general terms of support.

Under the terms of the agreement, as GM Financial expands its product portfolio and grows its business, GM committed to provide funding to GM Financial if its earning assets leverage ratio rises above pre-determined thresholds. GM extended an intercompany revolving credit facility to GM Financial to provide up to $1 billion of liquidity if needed.

Executives indicated this facility, which is subordinate to GM Financial’s senior unsecured and secured debt, will replace an existing $600 million line of credit from GM.

They also mentioned the agreement also provides that GM will use its commercially reasonable efforts to ensure that GM Financial will continue to be designated as a subsidiary borrower on up to $4 billion of GM’s corporate revolving line of credit.

“GM Financial is a core component of GM’s business and this agreement will strengthen its capability to support GM’s strategy,” GM president Dan Ammann said.

Since being acquired by GM in 2010, GM Financial has significantly increased its share of GM’s business, which now represents 75 percent of GM Financial’s consumer loan and lease originations.

And the finance company is also prospering within its division that services stores outside of GM’s franchise network.

In a quarter company executives said contained a “leveling of competitive intensity,” the AmeriCredit-branded business generated by GM Financial during the second quarter jumped to a higher level than in any quarter seen in a year.

AmeriCredit, which originates loans at non-GM dealerships, posted $855 million in paper during Q2, an amount $106 million higher than a year earlier.

GM Financial president and chief executive officer Dan Berce cheered Thursday’s move made by the parent automaker.

“With the acquisition of the international business, the growth in our North America product portfolio and the diversity of our funding platform, we are well positioned to support GM as its captive auto finance company,” Berce said.

“The support agreement represents the next step in the evolution of GM Financial and further cements our position as GM’s captive,” he added.

The support agreement has been filed by GM Financial on Form 8-K with the Securities and Exchange Commission.