Ford Completes First ABS Transaction in China - Analyst Blog

By
A A A

Ford Automotive Finance (China), the Chinese subsidiary of Ford Motor Credit Company, a part of Ford Motor Co. ( F ), 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 ), Tata Motors Ltd. ( TTM ) 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.


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 Report

FUJI HEAVY ADR (FUJHY): Get Free Report

TATA MOTORS-ADR (TTM): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: F , FOXF , FUJHY , TTM

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

33,110,376
  • $113.99 ▲ 1.77%
25,034,179
    $17.98 unch
24,486,872
  • $7.41 ▲ 2.07%
20,864,535
  • $7.39 ▼ 2.76%
18,600,501
  • $8.30 ▼ 0.36%
17,530,211
  • $8.14 ▲ 3.17%
17,299,208
  • $93.79 ▲ 2.74%
14,669,760
  • $25.78 ▼ 0.19%
As of 12/26/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com