Ford Motor Credit Shows How The Income Has Rebounded
According to SubPrimeNews Ford Motor Credit has posted a total net income of $1.3 billion in 2009, which is a huge turnaround – in 2008 the company posted a net loss of $1.5 billion. That’s a turnaround of over $2.8 billion, and before taxes Ford Credit earned $2 billion in 2009, which is way up from their $473 million loss in 2008. There are several reasons for this huge turnaround. Leased vehicles are showing a lower depreciation expense, the lower volume of vehicles has led to a lower provision for credit losses and Ford has significantly lowered their operating costs.
Officials are expecting 2010 to be profitable, though it could be lower than in 2009, and let’s not forget that this is all pre-tax. The automobile transport industry is excited to see Ford do so well – it’s a huge part of the industry’s workload, and with Ford doing so well the automobile transport industry will do better. Toyota’s losses have also been Ford’s gain, especially when customer loyalty to the Ford name has risen in the wake of Toyota’s downfall as the automaker giant. Things just keep looking up for Ford, it seems.