September 29, 2006
Ford Motor Credit Company to restructure its North American operations
Dearborn, Michigan – Ford Motor Credit Company has announced it is consolidating and centralizing most of its originations and servicing operations in the U.S., to reduce costs and improve process efficiencies. The action will also include salaried personnel reductions of about 2,000 jobs in Canada and the U.S.
The company will consolidate its remaining 59 U.S. branches into six existing service centres. Sales employees who work directly with dealers will remain in local markets to maintain these connections. Completion of the branch consolidation is expected by the end of 2007. A similar structure is being considered in Canada, which currently has seven branches and one service centre.
Since 2003, Ford Motor Credit has closed nearly 110 branches in Canada and the U.S. Personnel reductions will be achieved through attrition, early retirements, voluntary separations and, if necessary, involuntary separations. Currently, about 8,600 employees work in the company’s offices in the two countries. As of June 30, 2006, the company’s global managed receivables were US$151 billion.
Fore Motor Credit Company is one of the world’s largest automotive finance companies, and has supported Ford sales since 1959. It has about 14,000 employees in 36 countries, and provides automotive financing for Ford, Lincoln, Mercury, Aston Martin, Jaguar, Land Rover, Mazda and Volvo dealers and customers.