Ford has announced it will no longer provide finance to private car buyers. The cuts to the Ford Credit arm will result in 160 job losses, and are expected to have a significant impact on the dealerships, particularly in regional areas where the dependence on Ford Credit for retail finance is higher. Several dealers speaking to The Age are considering switching to selling Japanese and Korean cars instead.
More information:
http://www.afr.com/home/viewer.aspx?ATL://1231970251056§ion=financial_services&title=Ford+Credit+Australia+winds+back+operations
http://www.theage.com.au/national/ford-set-for-job-losses-20090114-7h14.html?page=-1
Stock for your watchlist:
F.N Ford Motor Company (New York Stock Exchange)
In better news, first home buyer mortgage applications have surged and the number of home loan approvals rose 1.3 % in November, when the government boosted first home owner grants. Lower interest rates, government incentives and soaring rents have contributed to the rebound in borrowing by first home owners, and in the process, seem to have stemmed the fall in the housing market.
More information:
http://www.theage.com.au/national/first-home-buyer-loans-surge-as-grants-kick-in-20090114-7h1b.html
http://www.theaustralian.news.com.au/business/story/0,28124,24914426-25658,00.html
http://www.news.com.au/heraldsun/story/0,21985,24911550-664,00.html
