At a time when the global automotive market is mired in deep recession - and things likely aren't going to be getting any better, with China in the midst of an epidemic - Ford's lending arm is acting as the profit backbone for the company, generating more profit now than it ever has for the company. Amid an epic loss, and the resignation of the company's president, Ford credit now generates a remarkable half of the automaker's profit, according to Bloomberg, which is up from 15% to 20% in the past. The company's credit arm makes loans to dealers stocking vehicles and then the consumers who buy them. Ford is relying on its financing unit to help it fund "multi-billion outlays on electric and self-driving cars" now. The parent corporation, however, is dealing with $11 billion in charges from a restructuring that "could take years". Lawrence Orlowski, an analyst at S&P Global Ratings said of Ford's credit arm: “It’s like the ballast that keeps the ship steady. It’s a balancing act.” https://www.zerohedge.com/markets/fords-lending-arm-does-dirty-work-parent-company-generating-more-profit-now-ever
Exactly. People are already being careful and banks getting stricter on auto loans. https://wolfstreet.com/2020/02/09/heloc-balances-plunge-to-15-year-low-whats-going-on-here/