Ford To Double Its Chinese Financing.

Ford Auto Finance Ltd. (China) hopes to cover 26 cities by January 2007 which is a massive increase compared to the two last year. Beijing and Shanghai were the two cities that were covered last year. Ford Motor Credit had initially invested $60 million, in Ford Automotive Finance a fully owned subsidiary, when it won an operating license in May 2005 to set up its operations in China.

The company has offered around 1.2 to 1.3 billion (Yuan) in Chinese currency to hundred Ford Dealers as wholesale loans. Jack Hu, the president of Ford Automotive Finance in China has stated that 3000 auto loans in the retail segment. The average of the retail loans amounts to 100,000 to 110,000 Yuan each, which amounts to 30 million Yuan. In wholesale loans to Ford Dealers around mainland China the Company has distributed around 1.2 to 1.3 billion Yuan.

Ford Motor Credit Company is one of the biggest automotive finance firms. It has been involved in the sale of Ford Product since 1959 and operates in 37 countries with receivables amount to $165 Billion.

Ford is increasing its presence in China. Its brands are Ford, Lincoln, Volvo, Jaguar and Land Rover. The retail sales of its unit exceeded of 110,000 in the first three quarters of 2006. It has recorded around 100 percent growth this year and is nearly the same when compared to the previous year. It is planning a cautious growth in china. It may extend the capacity of their plant in southwest of Chinese city, Chongquing. Despite its cautionary approach it is has doubled its share in the market. This is in contrast to its flagging sales back at home in the United States.

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