Ford’s captive finance company Ford Credit posted pre tax profits of $1,756m for 2013, up 3% from the $1,697 recorded in 2012
Ford credited the rise on an increase in volume, primarily in North America, thanks to a change in marketing strategy. It also highlighted higher non-consumer finance outstandings, due to dealer stock, as helping boost profits.
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The annual increase in profits came despite a $46m year-on-year fall in pre-tax profit for Q4 to $368m, which the company blamed primarily on unfavourable residual performance related to lower auction values and lower financing margins in North American, as well as credit loss reserve changes.
For its overall finance services pre tax results, Ford included the liquidation of a portfolio of Volvo finance outstandings which were not included in Ford sale of Volvo auto business in 2010. This brought Ford’s overall Financial Services pre tax profit down to $1,672, down £38m year on year.
Overall, Ford’s pre-tax profits were up to $8.6bn, the highest "in a decade" and up $603m year on year, with full year net income up to $7.2bn.
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