Ford Credit Called on Global Experience With China ABS

Ford Motor Credit told Auto Finance News that its strategy in China, as globally, is to grow in line with  Ford and industry sales.

This past May, Ford Automotive Finance China, Ford Motor Credit Company’s Chinese subsidiary, completed its first asset-backed securitization, or ABS, to support the financing of Ford brand cars.

Ford Automotive Finance became the first wholly-owned foreign finance company to complete an ABS transaction in the Communist country. The loan package, around 800 million yuan, is governed by the China Banking Regulatory Commission and the People’s Bank of China.

This month, Ford China said its sales grew 32% in May with 93,323 wholesale vehicles sold compared to 70,449 in May 2013. Year-to-date sales were up 39%, with 461,473 sold compared to 332,308 sold in the first five months of 2013.

Ford Credit spokeswoman Margaret Mellot told AFN that the company called on its global ABS issuance experience to help it break into and navigate the fast-growing auto market in China.  She said she wasn’t aware of any significant ABS process requirements unique to China from Ford’s perspective.

“Going through this process for the first time was a good learning experience for us in terms of the marketplace and the requirements, and gave us the opportunity to work with the regulators and investors to ensure a successful transaction,” said Mellot

She said that, having completed this first ABS transaction in China, the company knows they now have a successful platform that can be used in the future.