For Ford Motor Co., every decision starts with caring for customers, a model mirrored by its captive, Ford Credit Chief Executive Marion Harris told Auto Finance News.
When the pandemic hit in March, the captive immediately launched the “Built to Lend a Hand” program allowing consumers to defer payments for up to three months, while Ford Credit would cover payments for three months. Ford deferred payments for 11% of its U.S. portfolio, with more than 99% of those customers resuming payments at this point, Harris said.
“This program really provided the peace of mind our customers needed, and we believe will improve customer loyalty,” he said. Ford Promise also allows customers to return a vehicle within the first year of purchase if they financed through Ford Credit. The lender also provided financial assistance to dealers.
“I was nervous in the very beginning [of the pandemic]; we didn’t know what was going to happen,” Harris said. “We all came together and worked as a team. We fought through the short- and long-term effects of what we needed to do.”
Ford Credit’s quick reaction to the pandemic was largely due to Harris’ ability to empower the team and develop creative solutions, Jim Drotman, executive vice president for Ford Credit’s U.S. and Canadian operations, told AFN. “As we were all trying to determine the impact of the pandemic, Marion was instrumental in rallying the team,” Drotman said. “He listens very well. Once he has heard the viewpoints of the team members, he’s able to determine what the direction is going to be and communicate it back to the leadership team.”
Ford Credit’s core strategy of “supporting our customers and treating them like family,” paid off, Harris said. The captive saw its “strongest performance” in 15 years in the third quarter, generating $1.1 billion in earnings before taxes, an increase of 120% from last quarter and 57% year over year, John Lawler, Ford Motor’s new chief financial officer, said on the third-quarter earnings call.
Total net receivables for consumer loans and leases clocked in at $76.3 billion, up from $73.7 billion last quarter. Ford Credit benefited from strong credit performance as a result of helping customers and from an “unprecedented” rise in vehicle prices, Harris noted.
Ford Credit, Harris said, will continue to focus on customer experience while supporting Ford Motor’s priorities in 2021, particularly in the commercial vehicle business. “We’re planning some killer commercial financing products and services that I’m very excited about for our future,” he said.
Harris also has his eye on potential credit loss increases amid high unemployment going into the new year, as well as on digital tools and self-service for consumers.
Harris has also focused on diversity and inclusion by listening to diverse groups of employees and identifying opportunities for improvement, Drotman said.
For Harris personally, continuing to improve as a leader is a must, a lesson he learned from working with Dave Cosper, now chief financial officer of Sonic Automotive. “One of the things that I learned from Dave is that leadership capability is a lot like athletics. You’re either improving or getting worse; you don’t get to a certain level and just maintain,” Harris said.
Harris has been with Ford since 1999. Prior to taking on his current role last November, he served as vice president of Ford Motor’s mobility business group, where he led connected services for Ford Commercial Solutions and FordPass, a digital platform that syncs vehicles with drivers’ phones.
“That experience was really important for me. It taught me about customer experience and digital transformation and I brought that into this role at Ford Credit,” he said.
Harris also served as chief financial officer and treasurer at Ford Credit, where he was “integral in the development of Ford Credit’s financial technology strategies,” according to a company statement. Additionally, he also serves on the board of FordDirect, a digital marketing solutions venture for Ford and Lincoln dealers.
