Ford Motor Credit Receives Final Approval to Enter China Auto Finance Market

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.