. Ford Motor Credit Receives Final Approval To
Enter China Auto Finance Market
Ford Motor Credit will
start offering auto financing in China at the beginning of the third
quarter after receiving final approval to commence business
operations.
It will support the sale
of Ford vehicles by offering wholesale loans to dealers. In addition,
it will pilot consumer installment loans in select markets.
SHANGHAI, China - Ford Motor
Credit Company received final approval to commence business operations in
China and expects to begin providing auto financing in the country at the
beginning of the third quarter.
"China is a growing
market that is an integral part of Ford Motor Company's global
strategy," said Jack Hu, President of Ford Automotive Finance (China)
Limited (FAFC), the name under which Ford Motor Credit will do business in
China. "We intend to help Ford Motor Company enhance its presence in
China by supporting the sale of Ford vehicles."
The approval came at the end
of a multi-stage process that lasted more than a year. The final phase
required Ford Motor Credit to hire personnel and set up processes for
review by Chinese regulators.
"We appreciate the
confidence that Chinese authorities have shown in us by approving our
business plans," said John Noone, president of International
Operations at Ford Motor Credit. "We hope to continue to work with
the authorities in the future as they develop rules governing the finance
industry."
FAFC will initially
concentrate on financing the dealer vehicle inventory needs of the Ford
dealers in China. In the meantime, it plans to pilot consumer installment
loans in select markets.
FAFC will support the sale of
Ford Motor Company vehicles manufactured in China as well as those
imported into the country. Although initially FAFC will offer vehicle
inventory wholesale loans for Ford brand dealers, it will subsequently
expand financing to dealers of other Ford Motor Company brands including
Volvo, Land Rover and Jaguar.
"We have taken a prudent
course in China," said Mike Bannister, chairman and chief executive
officer of Ford Motor Credit Company. "We plan to establish a solid
foundation on which to build our long-term operations."
In addition to Ford Motor
Company's $1 billion investment, Ford Motor Credit has made a $60 million
-- or RMB 500 million -- investment in China. It will invest more as its
business needs grow.
