Profile: Ford Motor Co (F.N)
26 Feb 2015
Ford Motor Company (Ford), incorporated on July 9, 1919, is a manufacturer of automobiles. The Company together with its subsidiaries is engaged in other businesses, including financing vehicles. The Company operates in two segments: Automotive and Financial Services. Automotive includes Ford North America, Ford South America, Ford Europe, Ford Middle East & Africa and Ford Asia Pacific. Financial services include Ford Motor Credit Company and Other Financial Service. The Company manufactures or distributes automobiles across six continents. Its automotive brands include Ford and Lincoln. Other Financial Services includes a range of businesses, including holding companies and real estate.
Ford North America primarily includes the sale of Ford- and Lincoln-brand vehicles, service parts, and accessories in North America (the United States, Canada, and Mexico). Ford South America primarily includes the sale of Ford-brand vehicles, service parts, and accessories in South America. Ford Europe Primarily includes the sale of Ford-brand vehicles, components, service parts, and accessories in Europe, Turkey, and Russia. Ford Middle East & Africa primarily includes the sale of Ford and Lincoln brand vehicles and related service parts and accessories in the Middle East and Africa region. Ford Asia Pacific primarily includes the sale of Ford brand vehicles and related service parts and accessories in the Asia Pacific region.
All of Ford’s vehicles, parts, and accessories are marketed through retail dealers in North America, and through distributors and dealers outside of North America (collectively, dealerships), majority of which are independently owned. The Company sells vehicles to its dealerships for sale to fleet customers, including commercial fleet customers, daily rental car companies, and governments. Ford also sells parts and accessories, primarily to its dealerships (which in turn sells these products to retail customers) and to authorized parts distributors (which in turn primarily sells these products to retailers). Through its dealerships, it also offers extended service contracts to retail customers.
Financial Services Sector
The Company’s wholly owned subsidiary, Ford Motor Credit Company LLC (Ford Credit) offers a range of automotive financing products to and through automotive dealers worldwide. Ford Credit primarily includes vehicle-related financing, leasing, and insurance. Major share of Ford Credit’s business consists of financing its vehicles and supporting its dealers. Ford Credit earns its revenue primarily from: payments made under retail installment sale and lease contracts that it originates and purchases; interest supplements and other support payments from the Company and its subsidiaries on special-rate financing programs, and payments made under wholesale and other dealer loan financing programs.
Ford Credit has a portfolio of finance receivables and leases, which it classifies into two segments: consumer and non-consumer. Finance receivables and leases in the consumer segment relate to products offered to individuals and to businesses that finance the acquisition of vehicles from dealers for personal and commercial use. The financing products include retail installment sale contracts for new and used vehicles, and leases for new vehicles to retail customers, government entities, daily rental car companies, and fleet customers. Finance receivables in the non-consumer segment relate primarily to products offered to automotive dealers, including loans to finance the purchase of vehicle inventory (that is wholesale financing), for improvements to dealership facilities, for working capital, and for purchase of dealership real estate. Ford Credit also purchases receivables generated by the Company and its subsidiaries, primarily in connection with the sale of parts and accessories. Ford Credit does business in the United States and Canada through regional business centers. Outside of the United States, FCE Bank plc (FCE) is Ford Credit's operation.
Ford Motor Co
1 American Rd
DEARBORN MI 48126-2701
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