Ford Credit stops giving loan to dealers in China
Shanghai, December 31 (Gasgoo.com) Ford Credit has decided to stop offering loans to dealers and consumer in the Chinese market because of finance liquidity problems, the International Business Daily reported Tuesday.
The report said Ford dealers were informed on Dec. 30 that loans used by dealers to stock vehicles or by consumers for down payments will be suspended. All of the brands within the company's portfolio, involving Volvo, are included for this meaure.
Changan Ford Mazda Automotive Co, Ford's joint venture automaker in China, did not make any immediate comment.
The US automaker's finance arm started to offer loans to Chinese dealers and consumers through Ford Automotive Finance (China) Limited (FAFC) in mid-2005. It finances up to 80 percent of the full price of a Ford vehicle with a two-year payment term.
Analysts say liquidity crisis has caused a drain on Ford's resources and limited the company's ability to offer financing to dealers to buy vehicles, according to the report.
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