Profile: Ford Motor Co (F.N)
19 Sep 2014
Ford Motor Company (Ford), incorporated on July 9, 1919, is a producer 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, and Ford Asia Pacific Africa region. 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. Effective September 26, 2013, Ford Motor Company acquired Livio, a developer of software.
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 Asia Pacific Africa primarily includes the sale of Ford-brand vehicles, service parts, and accessories in the Asia Pacific region and South Africa. The Company tracks industry sales and market share for six markets in South America: Argentina, Brazil, Chile, Colombia, Ecuador, and Venezuela.
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’s industry and market share measures focus on 19 markets in Europe: Austria, Belgium, Britain, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, and Switzerland. Ford Europe's wholesales are more inclusive, tracking Ford-brand vehicles in every market in the region, including wholesales in Turkey and Russia from its unconsolidated affiliates Ford Otosan and FordSollers. Ford Asia Pacific Africa industry sales and market share data focus on its 12 major markets in the region; wholesales are more inclusive, tracking every market in the region. Of the markets the Company tracks in this region, ASEAN, Australia, China, India, and South Africa are its principal markets.
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. Within Europe, FCE's markets are Germany and the United Kingdom. About 70% of FCE's finance and lease receivables are from FCE's customers and Ford dealers in Germany, the United Kingdom, and France; about 15% are from FCE's customers and Ford dealers in Italy and Spain, and about 1% are from FCE's customers and Ford dealers in Greece, Ireland, and Portugal. FCE, through its Worldwide Trade Financing division, also provides financing to dealers in countries where it has no local presence.
The Company competes with Fiat-Chrysler, General Motors Company, Honda Motor Company, Hyundai-Kia Automotive Group, PSA Peugeot Citroen, Renault-Nissan B.V., Suzuki Motor Corporation, Toyota Motor Corporation, Volkswagen AG Group, BMW, Mercedes-Benz and Audi.
Ford Motor Co
One American Road
DEARBORN MI 48126
Company Web Links
- Ford to cut production at Cologne as European demand cools
- Europe new car registrations rise 1.8 pct in August - ACEA
- U.S. regulators probe 205,000 Ford Fiestas for door-latch issue
- Workers at Lear plant in Indiana go on strike, could affect Ford -Chicago Tribune
- Ford recalls older model Escape and Mercury Mariner hybrids