Skip to: Content
Skip to: Site Navigation
Skip to: Search

October 13, 2008 8:58:45 AM CDT

Learn about Newser Points »

« Back to the grid | Next story »

SUV Credit Crunch Rolls Over Ford

Posted May 30, 08 10:18 AM CDT in Business 

(Newser) – Ford's plans to get back in the black are being forced off the road by woes at its lending arm, the Wall Street Journal reports. The auto giant made a lot of cut-rate loans on trucks and SUVs in recent  years and has been unable to recoup losses on bad loans through repossessions because of the plummeting resale value of bigger vehicles.

The credit arm may still scrape into profitability this year, but with earnings way down from last year's $1.2 billion. The company, preparing to slash jobs as sales shrink, is unlikely to spin off its troubled credit arm the way GM did. Ford has relied on profits from Ford Credit even when the economy was cruising, and the division has been proven to boost customer loyalty. 

Source Wall Street Journal

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • Plunging Truck Sales Drive Ford Deeper Into the Red

    Jun 21, 08 9:12 AM CDT
    Plunging Truck Sales Drive Ford Deeper Into the Red Ford's recovery plans have been sent careening off the road by the continuing drop in truck and SUV sales, the Wall Street Journal reports. The company, which now expects this year's losses to top 2007's $2.7 billion, has given up hope of being back in the black by 2009. The ailing Detroit giant has cut production again and delayed the launch of its new F-150 pickup. More »

Unsold 2008 models are reflected in the chrome grille of an unsold 2008 Edge at a Ford dealership in the south Denver suburb of Littleton, Colo., on Sunday, May 11, 2008.   (AP Photo/David Zalubowski)
Unsold 2008 Super Duty pickup trucks sit at a Ford dealership in the south Denver suburb of Littleton, Colo., on Sunday, May 11, 2008.   (AP Photo/David Zalubowski)
A sign promoting a discounted interest rate is seen on the windshield of an unsold 2007 Ford F-150 pickup truck at a Ford dealership.   (AP Photo/David Zalubowski, file)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 4)

Tags

Ford  • SUV  • trucks  • credit  • used cars  • repossessions


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »