Ford Motor Co. cut earnings expectations for its finance arm next year, the latest sign that falling used-car prices are hurting automotive businesses. The Dearborn, Mich., auto maker cut Ford Credit’s 2017 pretax profit forecast by $300 million to $1.5 billion amid sliding auction values on used vehicles, finance chief Bob Shanks told analysts Thursday. The used-car values continued falling through September as vehicles...
Ford Motor has cut its 2017 pre - tax profit forecast for its finance department by $ 300 m , the latest sign that rising used - car prices are hitting the US auto sector . As we have noted , used car prices have been dropping as lend - lease vehicles flood the market , creating a glut . Ford 's finance chief Bob Shanks warned the slide is spreading beyond small cars and crossovers , which are already suffering from a slump in sales , to larger pickup trucks and SUVs , and car buyers , as evidenced by results from polls last week . At the same time , there are concerns that an anticipated increase in US interest rates will push up auto loan prices .