Ford Credit Confirms Plan To Leave ChileAugust 25, 2009: 02:32 PM ET
By Jeff Bennett and Julian Dowling
OF DOW JONES NEWSWIRES
DETROIT -(Dow Jones)- Ford Motor Co.'s (F) credit arm confirmed Tuesday it plans to end its Chilean operations within the next few months.
Ford Motor Credit has signed an agreement with local financing firm Forum Servicios Financieros SA to take over the vehicle financing operations, Ford Motor Credit spokeswoman Libbey Meredith said Tuesday.
Meredith said the decision was made based on scale rather than slumping automotive sales, as reported earlier Tuesday by Chilean newspaper Diario Financiero. Ford Motor Credit employs five people who work with six dealers. Meredith added that dealers were notified of the changes in July.
Ford Motor Credit is not present in all locations where the auto maker sells vehicles and so relies on third parties to provide financing. In Chile, between 35% and 50% of all new cars sold are financed by firms like Forum, GMAC, Mitsui and Masfin.
The company continues to operate in Mexico, Puerto Rico, Brazil and Argentina.
Ford sold 2,145 vehicles in Chile from January to July, representing 2.7% of the market. Most of those sold were sport utility vehicles and commercial vehicles, according to Chile's automotive association Anac.
Ford Motor shares recently rose 14 cents, or 1.9%, to $7.56. The shares have increased 71% in value over the past year.
-By Jeff Bennett, Dow Jones Newswires; 248-204-5542