AutoBeta(AutoBeta.net)02/08 Report--

On February 8, the Shanghai Banking and Insurance Regulatory Bureau issued two fines for Ford Automotive Finance (China) Co., Ltd.

The fine No. 4 of the Shanghai Banking Insurance Supervision decision (2023) shows that the main illegal fact of Ford Automotive Finance (China) Co., Ltd. is a serious violation of prudent operating rules in carrying out retail loan business. In view of the above illegal acts, the Shanghai Regulatory Administration of the Bank of China Insurance Regulatory Commission, in accordance with Article 46 (5) of the Banking Supervision and Administration Law of the people's Republic of China and Article 42 of the interim measures for the Administration of personal loans, Ford Auto Finance (China) Co., Ltd. is required to order it to correct and impose a fine of 500000 yuan.

In addition, the penalty ticket No. 5 of the Shanghai Banking Insurance Supervision decision word (2023) shows that the name of the person punished, "Suda Orankijanan", is mainly responsible for the serious violation of prudent operating rules for Ford Auto Finance (China) Co., Ltd. in carrying out retail loan business. The Shanghai Regulatory Administration of the Bank of China Insurance Regulatory Commission shall give it a warning in accordance with item (2) of Article 48 of the Banking Supervision and Administration Law of the people's Republic of China.

According to Tianyan, Ford Automotive Finance (China) Co., Ltd. was established in June 2005. its legal representative Chen Guiqiong has a registered capital of 3.76 billion yuan. the scope of business includes accepting time deposits of more than 3 months (including) from foreign shareholders, wholly-owned subsidiaries of their groups and domestic shareholders, and accepting vehicle loan deposits from car dealers. The equity penetration chart shows that the company is suspected to be wholly owned by Ford Motor Credit Co., Ltd.

Ford's annual results show that Ford's cumulative revenue in 2022 was $158.1 billion, with adjusted EBIT of $10.4 billion, including $9.176 billion in North America, $413 million in South America, $47 million in Europe and $628 million in the rest of the international market. Data show that Ford's full-year net loss is about $2 billion. Ford CEO Jim Farley said the loss was due to poor execution by the group, while Ford's chief financial officer, John Lawler, said half of the loss was due to failure to meet production targets and the other half was related to higher costs.

Subdivided into the Chinese market, the data show that Ford lost $572 million in China, which the industry believes is related to falling sales in China. Ford Motor (Ford and Lincoln) sold a total of 283800 vehicles in China in 2022, down 12.51% from the same period last year, of which the Lincoln brand delivered 77300 vehicles, down 6.3% from the same period last year. It is generally believed that the Chinese market is undergoing a transition to new energy, the traditional fuel car track is relatively shrinking, while Ford's electrification is very slow, resulting in a year-on-year decline in its sales. According to the FIFA sales data, Ford Electric Horse sold only 4860 vehicles in 2022.

With the rapid rise of domestic independent brands and new car companies, the market share of traditional joint venture brands may be quickly divided, and there will be more brutal knockout stages in the whole car market. For Ford China, it is urgent to accelerate the electrification of layout. According to the plan, Ford will have a global production capacity of 2 million electric vehicles by 2026, accounting for 50 per cent of electric vehicle sales in 2030.

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