Weekly Wrap: GDP contraction signals recession, lenders stock up on cash [Video] | Auto Finance News Weekly Wrap: GDP contraction signals recession, lenders stock up on cash [Video] | Auto Finance News
Auto Finance News
Subscribe
  • Home
  • News
    • All News
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Compliance & Regs
    • Risk Management
    • Capital & Funding
    • Powersports
  • Events
    • DEMOvation Challenge
    • Auto Finance Summit
    • Auto Finance Innovation Summit
  • EXCELLENCE
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest
    • Magazine Issues
  • Podcast
  • Data
    • Lender Ranking
    • Fixed Rate Outstandings at Banks
    • Securitizations
    • Market Share Monitor
AFN PLUS
Saturday, February 27, 2021
Log In
No Result
View All Result
Auto Finance News
  • Home
  • News
    • All News
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Compliance & Regs
    • Risk Management
    • Capital & Funding
    • Powersports
  • Events
    • DEMOvation Challenge
    • Auto Finance Summit
    • Auto Finance Innovation Summit
  • EXCELLENCE
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest
    • Magazine Issues
  • Podcast
  • Data
    • Lender Ranking
    • Fixed Rate Outstandings at Banks
    • Securitizations
    • Market Share Monitor
AFN PLUS
Log In
No Result
View All Result
Auto Finance News
No Result
View All Result

Weekly Wrap: GDP contraction signals recession, lenders stock up on cash [Video]

Joey Pizzolato by Joey Pizzolato
May 1, 2020
in Risk Management
Reading Time: 1min read

This week, news of a 4.8% contraction in the nation’s gross domestic product in the first quarter signaled a recession brought on by the economic fallout of COVID-19, and auto lenders are stocking up on cash.

Ford Motor Co., for one, pulled “every appropriate lever” to bolster its liquidity position, which the automaker anticipates will last through the end of the year with “no production or financing actions,” according to Chief Executive Jim Hackett. Currently, Ford Motor has $35 billion in liquidity, and captive Ford Credit has $28 billion. J.P. Morgan estimates that Ford will burn through between $14 billion and $19 billion of cash in the second quarter alone.

Santander Consumer USA, too, is setting aside cash in response to the pandemic. The subprime lender set aside $442 million for losses related to the novel coronavirus, in addition to $2.5 billion for CECL reserves. Total allowances for credit losses came to $5.5 billion on a total portfolio of $47.6 billion.

In this editors’ roundtable, Nicole Casperson, Joey Pizzolato and JJ Hornblass discuss news developments during the week ending May 1, and hint at what Auto Finance News will cover in the forthcoming week.

Tags: CoronavirusFord CreditFord Motor Co.Santander Consumer USAVideoWeekly Wrap
Previous Post

‘Fire sale’ of Hertz rentals poses risk to broader auto sector

Next Post

CFPB: Auto loan apps drop 52% in March

Related Posts

Tricolor Auto Acceptance launches AI-powered software service
Risk Management

Tricolor Auto Acceptance launches AI-powered software service

February 25, 2021
Credit Unions eye growth after flat 2020
Risk Management

Credit Unions eye growth after flat 2020

February 24, 2021
Subprime lending share nears Great Recession lows
Risk Management

Watch: What will it take to prop up subprime auto originations?

February 22, 2021
Next Post

CFPB: Auto loan apps drop 52% in March

By subscribing you agree to our Terms of Use and Privacy Policy

Latest Magazine Issue

INNOVATION & TECHNOLOGY

Digital lending lags despite consumer expectations

Digital lending lags despite consumer expectations

February 22, 2021
New Webinar Offers Tips for How Lenders Should Adapt to Digital Disruption

Auto Finance Innovation Summit pre-conference survey now open

February 22, 2021

CORONAVIRUS

CPS sees decline in Q4 originations amid low-interest competition

CPS sees decline in Q4 originations amid low-interest competition

February 24, 2021
Subprime sinks in Q3, auto originations move closer to pre-pandemic levels

Subprime sinks in Q3, auto originations move closer to pre-pandemic levels

February 19, 2021

SPONSORED

Collateral Protection Insurance (CPI): What is CPI and what does it do?

Collateral Protection Insurance (CPI): What is CPI and what does it do?

January 8, 2021
US auto sales poised for crash after slowest pace in a decade

Driving Customer Loyalty, Retention After Total Loss

December 9, 2020
When tough times hit, proactive strategies pay

When tough times hit, proactive strategies pay

November 2, 2020

About

ABOUT US

PRIVACY TERMS

ADA COMPLIANCE

CODE OF JOURNALISM ETHICS

Contact Us

ADVERTISE

HELP CENTER

EMAIL SIGN UP 

Follow Us

twitter twitter linkedin podcast

©2021 Royal Media & Auto Finance News

No Result
View All Result
  • Home
  • News
    • All News
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Compliance & Regs
    • Risk Management
    • Capital & Funding
    • Powersports
  • Events
    • DEMOvation Challenge
    • Auto Finance Summit
    • Auto Finance Innovation Summit
  • Excellence
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest
    • Magazine Issues
  • Podcast
  • Data
    • Lender Ranking
    • Fixed Rate Outstandings
    • Securitizations
    • Market Share Monitor
  • +PLUS
  • SUBSCRIBE
  • Log In / Account

© 2020 Royal Media

Go to mobile version