Profile: Ford Motor Co (F.N)
1 Jul 2015
Ford Motor Company (Ford), incorporated on July 9, 1919, manufactures or distributes automobiles across six continents. The Company operates in two sectors: Automotive and Financial Services. Automotive sector includes North America, South America, Europe, Middle East & Africa, and Asia Pacific segments. Financial Services sector includes Ford Credit and Other Financial Services segments. Its vehicle brands include Ford, Ford-Lincoln and Lincoln. Other Financial Services includes a range of businesses, including holding companies and real estate-related activities. The Company has around 62 plants across the world. Through its wholly owned subsidiary Ford Motor Credit Company LLC, it provides automotive financing products to and through automotive dealers throughout the world.
The Company’s North America segment includes the sale of Ford and Lincoln vehicles, service parts, and accessories in North America (the United States, Canada, and Mexico). South America segment includes the sale of Ford vehicles, service parts, and accessories in South America. Europe segment includes the sale of Ford vehicles, components, service parts, and accessories in Europe, Turkey, and Russia. Middle East & Africa segment includes the sale of Ford and Lincoln brand vehicles and related service parts and accessories in the Middle East and Africa region. Asia Pacific segment includes the sale of Ford and Lincoln vehicles, service parts, and accessories in the Asia Pacific region. All of its vehicles, parts, and accessories are sold through distributors and dealers, 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). It also offers extended service contracts.
Financial Services Sector
The Company’s Financial Services sector includes its vehicle-related financing and leasing activities. The Company analyzes the results of its Financial Services sector through two segments: Ford Credit and Other Financial Services, which includes holding companies, real estate, and the financing of some Volvo vehicles in Europe. Major share of Ford Credit’s business consists of financing its vehicles and supporting its dealers.
The Company’s Ford Credit has a portfolio of finance receivables and leases, which it classifies into two portfolios: 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. Non-Consumer Portfolio products include dealer financing, which includes wholesale loans to dealers to finance the purchase of vehicle inventory, also known as floorplan financing, as well as loans to dealers to finance working capital and improvements to dealership facilities, finance the purchase of dealership real estate, and finance other dealer programs and other financing, which is related to the sale of parts and accessories to dealers. Ford Credit operates its business in the United States and Canada through regional business centers. Ford Credit’s European operation is managed through its United Kingdom-based subsidiary, FCE Bank plc (FCE).
Ford Motor Co
1 American Rd
DEARBORN MI 48126-2701
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