Profile: Ford Motor Co (F.N)
19 Jul 2019
Ford Motor Company, incorporated on July 9, 1919, is a global automotive and mobility company. The Company's business includes designing, manufacturing, marketing, and servicing a line of Ford cars, trucks, and sport utility vehicles (SUVs), as well as Lincoln luxury vehicles. The Company operates in four segments: Automotive, Financial Services, Ford Smart Mobility LLC, and Central Treasury Operations. Ford Smart Mobility LLC and Central Treasury Operations are combined in All Other. The Company's vehicle brands are Ford and Lincoln. The Company sells its dealerships for retail sale, it also sells vehicles to its dealerships for sale to fleet customers, including commercial fleet customers, daily rental car companies, and governments. The Company also sells parts and accessories, primarily to its dealerships (which in turn sell these products to retail customers) and to authorized parts distributors (which in turn primarily sell these products to retailers). The Company also offers extended service contracts.
The Company's Automotive segment primarily includes the sale of Ford and Lincoln brand vehicles, service parts, and accessories across the world, together with the associated costs to develop, manufacture, distribute, and service the vehicles, parts and accessories. The Company's Automotive segment includes various regional business units, such as North America, South America, Europe, Middle East and Africa, and Asia Pacific. The Central Treasury Operations segment is primarily engaged in decision making for investments, risk management activities, and providing financing for the Automotive segment. Interest income (excluding interest earned on its extended service contract portfolio that is included in its Automotive segment), interest expense, gains and losses on cash equivalents and marketable securities, and foreign exchange derivatives associated with intercompany lending are included in the results of Central Treasury Operations. Ford Smart Mobility LLC is a subsidiary formed to design, build, grow, and invest in emerging mobility services.
The Company's Financial Services segment primarily includes its vehicle-related financing and leasing activities at Ford Motor Credit Company LLC (Ford Credit). The Company's subsidiary, Ford Credit, offers a range of automotive financing products to and through automotive dealers throughout the world. Ford Credit's business consists of financing its vehicles and supporting its dealers. Ford Credit has a portfolio of finance receivables and operating leases, which it classifies into two portfolios: consumer and non-consumer. Finance receivables and operating leases in the consumer portfolio include products offered to individuals and businesses that finance the acquisition of its vehicles from dealers for personal and commercial use. Retail financing includes retail installment sale contracts for new and used vehicles and direct financing leases for new vehicles to retail and commercial customers, including leasing companies, government entities, daily rental companies, and fleet customers. Finance receivables in the non-consumer portfolio include products offered to automotive dealers.
Ford Credit makes wholesale loans to dealers to finance the purchase of vehicle inventory, such as floorplan financing, as well as loans to dealers to finance working capital and improvements to dealership facilities, finance the purchase of dealership real estate, and finance other dealer vehicle programs. Ford Credit also purchases receivables generated by the Company and its subsidiaries, primarily related to the sale of parts and accessories to dealers, Ford-related loans, and certain used vehicles from daily rental fleet companies. Ford Credit does business in the United States and Canada through business centers. Ford Credit's European operations are managed through the United Kingdom-based subsidiary, FCE Bank plc (FCE). The Company routinely sponsors special retail and lease incentives to dealers' customers choosing to finance or lease its vehicles from Ford Credit.
The Company competes with Fiat Chrysler Automobiles, General Motors Company, Honda Motor Company, Hyundai-Kia Automotive Group, PSA Peugeot Citroen, Renault-Nissan B.V., Suzuki Motor Corporation, Toyota Motor Corporation and Volkswagen AG Group.
Ford Motor Co
1 American Rd
DEARBORN MI 48126-2701