Ford Credit Overview: Ford Credit (also known as Ford Motor Credit) is a wholly-owned subsidiary of the Ford Motor Company, headquartered in Detroit. Its sole business is extending loans to buyers of Ford cars and trucks (including other brands owned by Ford, such as Lincoln, Mercury, Jaguar, Land Rover, Volvo and Mazda). Ford Credit issues its own debt, independent of the Ford Motor Company, and thus files its own financial reports with the SEC.
Size: Ford Credit reports these figures as of September 30, 2008:
- Operates in 36 countries
- Assets = $155 billion
- Employees (full-time) = 11,100 (year-end 2007)
Positives: Unlike GMAC, Ford Credit has not expanded beyond vehicle finance. Hence, it does not have direct exposure to problems in the home mortgage market.
Negatives: Ford Credit suffers from the same pressures that beset the U.S. auto industry. The first 9 months of 2008 show a $1.3 billion loss for Ford Credit, though the third quarter was profitable. Full-time positions were cut by 1,800 (14%) in 2007. Quarterly financial reports in 2008 do not give employment figures.
