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May 29, 2005
The finance unit of Ford Motor Co yesterday said its wholly-owned branch in China has received final approval from Chinese regulators to provide car loans.
Ford Automotive Finance (China) Limited (FAFC) expects to kick off operations at the beginning of the third quarter of this year, Ford Credit said.
Ford Credit has invested US$60 million in FAFC and will invest more as its business grows, it said.
Ford Credit is the third foreign auto financing company to gain the final nod to open business in China.
The finance arms of General Motors and Volkswagen started to provide auto loans in China last year.
Ford Credit said FAFC will initially concentrate on providing vehicle inventory wholesale loans for Ford brand dealers.
In the meantime, it plans to pilot consumer instalment loans in select markets in China.
FAFC will support the sale of Ford vehicles made in China as well as those imported into the country, Ford Credit said.
It will also expand financing to dealers of other brands of Ford Motor, including Lincoln, Volvo, Land Rover and Jaguar, it said.
"China is a growing market that is an integral part of Ford Motor's global strategy. We intend to help Ford Motor enhance its presence in China by supporting the sale of Ford vehicles," said Jack Hu, president of FAFC.
Ford now produces the Fiesta and Mondeo sedans at its joint venture in Chongqing Municipality with Chang'an Motors - one of China's biggest automakers.
The venture will make the Focus sedans in the third quarter of this year.
Ford and Chang'an are building a second plant for the joint venture in Jiangsu Province, which will start to produce vehicles under the Ford and Mazda brands in 2007 with an initial capacity of 160,000 units a year.
On Thursday, Ford launched a Lincoln Navigator sports utility vehicle in Shanghai. The 5.4-litre Lincoln Navigator will be marketed through Ford's 23 dealerships in China for 738,000 yuan (US$89,238).
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