Ford is having a rough time on the automotive market around the world as demand slows for new vehicles in many parts of the world. As demand for vehicles slows, profits for Ford are taking a hit. Ford still has the best-selling vehicle in the country in the Ford F-150. Aside from that bright spot and Ford’s recent bragging of the Explorer being the top-selling SUV, the star for the Blue Oval is its credit arm. Analysts say that Ford Credit (FC) is propping the company up in good times and bad generating about half of the automaker’s profits, up from 15 to 20 percent in the past.
Ford Credit not only finances Ford vehicles for buyers, but it also makes loans to dealers for vehicles to sell on the lot. It’s also seen as helping the automaker to make its substantial investments into EVs and autonomous autos. Ford has racked up $11 billion in charges related to restructuring around the world that the credit arm is helping to pay. Analyst Lawrence Orlowski from S&P Global Ratings says that Ford Credit is “like the ballast that keeps the ship steady.”