Back to top

Analyst Blog

Ford Automotive Finance (China), the Chinese subsidiary of Ford Motor Credit Company, a part of Ford Motor Co. (F - Analyst Report), announced that it has completed the first asset-backed securitization (ABS) in the country. This ABS will assist in financing the company’s vehicle sales in the nation.

Ford Automotive Finance (China) is the first wholly foreign-owned auto finance company to complete such a transaction in China. This transaction, which is valued at 800 million renminbi, was completed under the recent ABS pilot program governed by the China Banking Regulatory Commission and the People’s Bank of China.

Ford will benefit from this transaction, as it will increase the automaker's penetration in the China’s capital markets, and thus help in the growth of its One Ford plan. In addition, this will support Ford’s strategy of diversified financing and local funding of business.

Ford Automotive Finance (China) is now focused on increasing its dealers and retail customers in the nation. The unit will also support the launch of the Lincoln brand in China. The ABS will further support the financing requirements of Ford in the nation.

Ford Automotive Finance (China) has been in operation since 2005. It offers wholesale financing for about 400 dealers and retail financing through 500 Ford dealerships in 290 cities across China. Its parent company Ford Credit is an experienced issuer of ABS with public and private programs in the U.S., Europe, Canada, Mexico and China. It has been securitizing assets since 1989

Ford currently carries a Zacks Rank #3 (Hold). Fox Factory Holding Corp. (FOXF - Snapshot Report), Tata Motors Ltd. (TTM - Snapshot Report) and Fuji Heavy Industries Ltd. (FUJHY) are some better-ranked automobile stocks worth considering. Fox Factory and Tata Motors carry a Zacks Rank #1 (Strong Buy), while Fuji is a Zacks Rank #2 (Buy) stock.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%