Ford Motor Credit Company is a leading financial services company serving the automotive industry. Provides financing to dealers and customers to support the sale of Ford Motor Company products worldwide and through Lincoln Automotive Financial Services in the United States, Canada, and China. Since 1959, it has provided financing to dealers and customers to support the sale of Ford Motor Company products. Ford Credit India Private Limited (from now on “Ford Credit India”) is a subsidiary of Ford Motor Credit Company, the global finance arm of Ford Motor Company. The Ford Credit segment includes the company’s vehicle financing and leasing businesses. The company offers a variety of vehicle financing products through dealerships around the world. Ford Credit’s business consists primarily of vehicle financing, dealer support, and leasing. Ford Motor Credit Company acquired the Associates First Capital Corporation branch through the Associates First Capital Corporation acquisition of Gulf plus Western in 1989
Ford Credit reported revenue of $2.6 billion quarterly for the second quarter of 2021 or about 9.7% of total revenue. Despite this, Ford Credit generated an adjusted EBIT of $1.6 billion in the second quarter of 2021, nearly tripling earnings as it benefited from the revenue recovery. The only operating segment to report Adjusted positive EBIT in the quarter.
Most of Ford Credit’s business involves financing Ford and Lincoln vehicles and supporting Ford and Lincoln dealerships. Its activities focus on consumer auto finance, dealer inventory, and leasing. Ford Credit competes primarily in financing programs and services, including those sponsored by Ford. A fundamental foundation of their service is the provision of comprehensive and consistent purchasing policies for term sales and retail leases and consistent support for dealer financing needs through economic cycles. These policies have helped Ford Credit build strong relationships with Ford’s dealer network that increase competitiveness.
Ford Credit also provides trade finance and credit to dealerships that sell Ford Motor Company products. The company provides financial services on behalf of Ford and issues corporate certificates. They introduced a weekly purchase plan in 1923 to start his journey in auto finance. Each week, they could pay a certain amount to the bank until they saved up to buy a car.