Ford Motor Credit Co.’s fourth-quarter earnings fell 23%, yet full-year profits still skyrocketed.
The Ford Motor Co. captive earned $2 billion in 2010, 53% more than the $1.3 billion it earned in 2009. The reasons: a lower provision for credit losses and less depreciation for leased vehicles.
The growth came despite lower fourth-quarter profits, which fell to $367 million from $452 million in the final quarter of 2009. Ford Credit blamed the decline on lower origination volume and fewer lease terminations.
Overall, the captive’s portfolio totaled $83 billion at yearend 2010, down from $95 billion at yearend 2009. Discontinuation of Jaguar, Land Rover, Mazda, and Volvo financing, plus lower industry volumes in recent years, contributed to the drop-off. At yearend 2011, Ford Credit expects managed receivables to be in the range of $80 billion to $85 billion.