Ford Automotive Finance (China), the Chinese subsidiary of Ford
Motor Credit Company, a part of
Ford Motor Co.
), 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
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.
Tata Motors Ltd.
Fuji Heavy Industries Ltd.
) 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.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
FORD MOTOR CO (F): Free Stock Analysis Report
FOX FACTORY HLD (FOXF): Free Stock Analysis
FUJI HEAVY ADR (FUJHY): Get Free Report
TATA MOTORS-ADR (TTM): Free Stock Analysis
To read this article on Zacks.com click here.