Sluggish vehicle sales at Ford Motor Co. are taking their toll on captive Ford Credit.
The automaker, slated to release fourth-quarter and yearend earnings Thursday, plans to eliminate 1,200 jobs by the end of July.
“This will help us keep our costs in line with our receivables and the lower industry sales overall,” said Ford Motor Credit spokeswoman Margaret Mellott.
Over the past few years, Ford Credit has trimmed staffing levels. The company employed 11,100 full-time workers at yearend 2007 and 12,900 at yearend 2006, according to its 2007 annual report.
Ford Credit has yet to accept any funding from the government, like GMAC and Chrysler Financial have done. But parent company Ford has been in contact with the Treasury Department about a possible capital infusion.
