Ford Motor Credit Company
This article needs additional citations for verification. (October 2009) |
Parent Ford Motor Company | | |
Website | ford.com/finance |
---|
Ford Motor Credit Company LLC,
The predominant share of Ford Credit's business consists of financing Ford and Lincoln vehicles and supporting Ford and Lincoln dealers. Specifically, its business activities are concentrated in the area of automobile financing for consumers and dealership inventory and leasing. Ford Credit competes mainly on the basis of service and financing rate programs, including those sponsored by Ford. A key foundation of its service is providing broad and consistent purchasing policies for retail installment sale and lease contracts, and consistent support for dealer financing requirements across economic cycles. These policies have helped Ford Credit build strong relationships with Ford's dealer network that enhance competitiveness.[2] Ford Credit also provides commercial financing and lines of credit to dealerships selling Ford Motor Company products. The firm also issues commercial paper and other debt instruments on Ford's behalf.
Ford Credit also owns Lincoln Automotive Financial Services, the arm that finances
Ford earned $2.63 billion EBIT with its Ford Credit segment in 2018, up from $2.31 billion in 2017. 2018 was the segment's highest full-year EBT in eight years. However, this upward trend may not last much longer as car sales continue to decline. Ford Credit's ROE, which fell from 22% in 2017 to 14% in 2018 forecasts the segment's coming decline.
History
This section needs expansion. You can help by adding to it. (March 2020) |
Ford began its journey into auto financing by launching a Weekly Purchase Plan in 1923. The program was designed to allow people to pay a certain amount to the bank weekly up until they had saved for the cost of a car.[3] In 1926, Ford constructed a new factory in Germany, but most of the local population could not afford a car. This prompted Henry Ford to found Credit AG für Ford-Fahrzeuge, German for 'Ford Credit Company AG' , in Berlin in order to help locals finance the purchase of a new car, in turn increasing sales. Henry and Edsel Ford became members of the board. In 1932, the newly-founded bank and the factory moved to Cologne. In 1962 the bank was renamed again to Ford Credit AG.[4]
From 1975 to 1979, the company briefly was the owner of the
Since the
References
- ^ a b c d e f "2014 Form 10-K, Ford Motor Credit Company LLC". United States Securities and Exchange Commission.
- ^ http://phx.corporate-ir.net/phoenix.zhtml?c=144914&p=irol-SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTEyMDMyODU5JkRTRVE9MSZTRVE9JlNRREVTQz1TRUNUSU9OX0JPRFkmZXhwPSZzdWJzaWQ9NTc=#s02B53D06C5344546BE557E474B8AE5C1 [dead link]
- ^ Bookmark +, Staff •. "Ford Motor Credit Marks 50th Anniversary". www.fi-magazine.com. Retrieved 2021-08-20.
- ^ 1926: Eine Bank für den Traum vom eigenen Auto bankingclub.de
- ^ David Barron: "McLane era represents Astros' most stable ownership", Houston Chronicle, January 18, 2010 [1]
- ^ Mary Connelly: "Ford 100: Houston Astros become diamond in the rough for Ford", Automotive News, June 19, 2003 [2]