Sustainability 2011/12

Financial Health

Ford Motor Credit Company

Established in 1959, Ford Motor Credit Company is a wholly owned subsidiary of Ford Motor Company that offers automotive financial services to dealerships and customers around the world. Ford Credit’s focus is on supporting the sale of Ford vehicles, and the company was providing financial services to 5,700 Ford and Lincoln dealers and more than 3.7 million retail customers as of year-end 2011. Ford Credit’s profits and dividends help support Ford’s business, including vehicle development.

Ford Credit has been a catalyst in helping Ford Motor Company’s financial recovery, providing consistent dealer support, a means to give customers options to purchase the vehicles they want, and profits and distributions to Ford. (For more, see the Voice with Ford Credit’s chairman and CEO.)

Ford Credit’s strong business practices enable it to finance customers across the credit spectrum, as well as successfully work with investors to fund the business. These practices and strong servicing also support loyalty. Independent U.S. studies show that Ford Credit customers are more loyal to Ford, Lincoln and our dealers than customers who utilize other financing.

In North America, Ford Credit does business in every state in the U.S. and all provinces in Canada. Outside the U.S., FCE Bank is Ford Credit’s largest operation, serving Europe. The biggest share of FCE’s business is in the U.K. and Germany, with smaller operations in most other European countries. Ford Credit also operates in select markets in Asia, Africa and Latin America.

Ford Credit offers a wide variety of automotive financing, insurance and related products to and through dealers, classifying finance receivables and leases in two segments:

  • Consumer: Finance receivables and leases related to products offered to individuals and businesses that finance the acquisition of vehicles from dealers for personal and commercial use.
  • Non-Consumer: Primarily products offered to automotive dealers, including loans to finance the purchase of vehicle inventory (wholesale financing), improvements to dealership facilities, working capital and the purchase of dealership real estate.

Ford Credit also works on issues of interest to its stakeholders, including the following:

  • Credit Availability: Ford Credit provides financing for qualified dealers and consumers, utilizing responsible financing and servicing practices. Ford Credit provides financing for customers across the credit spectrum and is committed to treating customers with fairness and respect.
  • Credit Approvals: Ford Credit has used consistent and prudent credit standards and practices for many years to support Ford Motor Company dealers and customers. Because the company uses proprietary credit originations and collections systems, it can finance a broader range of customers than if it used credit scores alone.
  • Compliance: Ford Credit uses responsible, consistent and transparent practices globally. Procedures are designed to help ensure that customers are treated fairly and the financing process is understandable. Ford Credit believes it maintains all material licenses and permits required for current operations and is in compliance with all material laws and regulations applicable to the company and its operations. Ford Credit monitors proposed changes to relevant legal and regulatory requirements in order to maintain its compliance. Through governmental relations efforts, Ford Credit also attempts to participate in the legislative and administrative rulemaking process on regulatory initiatives that affect finance companies.
  • Consumer Education and Focus: Ford Credit is a longstanding supporter of, and participant in, financial education through organizations such as AWARE (Americans Well-Informed on Automobile Retailing Economics), of which Ford Credit is a founding member, and Junior Achievement, as well as in community and educational forums globally. Ford Credit also is involved in the Jump$tart Coalition, which is dedicated to building financial literacy starting at a very young age, and participates in the Detroit Branch of the Federal Reserve Money Smart program. Ford Credit’s financial literacy workshop, “The 10 Ways to Achieve Financial Success,” is presented more than 50 times each year by company volunteers to community groups, school groups, trade shows, conventions and other events. Ford Credit developed a module that invites students to set personal financial goals, evaluate strategies for meeting those goals, and use algebra and data analysis to make short- and long-term financial decisions as part of the Ford Partnership for Advanced Studies (Ford PAS) program. Ford PAS is an academically rigorous standards-based curriculum used around the U.S. that works to ensure that students graduate high school with the skills they need for college or a career. Ford Credit’s website,, includes information in English and Spanish to help consumers make informed decisions about vehicle financing.
  • Customer Privacy: Ford Credit has a policy regarding customer information and privacy and uses systems and procedures to maintain the accuracy of customer information and to protect it from loss, misuse or alteration. Customer information is accessible to appropriate personnel who have a business need for the information. Ford Credit provides training and communications programs to educate personnel about privacy requirements. Beyond protecting customer privacy, Ford Credit continuously uses and works to develop robust processes to produce a superior service experience that ensures that customers are always treated fairly and respectfully.
  • Identity Theft: Ford Credit is a founding member of the Identity Theft Assistance Center, a nonprofit industry association in which member institutions collaborate to protect their customers from fraud and help them recover if they become victims of ID theft.
  • Technology and Process Improvements: Ford Credit continuously improves processes and uses technologies that drive efficiency and sustainability. These processes and technologies include: improved and online customer services that facilitate online credit applications, electronic contract signing, paperless invoices, electronic payments and online account management; electronic document storage; and software tools and telephony technologies to enhance responsiveness and increase satisfaction for dealers and customers.
  • Community: Ford Credit has a longstanding commitment to the communities where it does business. This includes providing structured work experience programs for young people. Ford Credit employees also participate in numerous community activities globally. Examples include personal finance training in schools and community organizations; environmental projects such as river cleanup, park and school beautification and recycling; JDRF walks to benefit diabetes research; the Susan G. Komen Race for the Cure and other activities benefitting medical research or assistance organizations; and drives to collect items such as supplies for schools, food for the hungry, clothing for the needy and necessities for soldiers stationed far from home.