hoffman23

Ford's Financial Services Business About to Enter the Red

You have not mentioned another area where FMCC is going to lose a bundle. They have a huge lease portfolio full of trucks and SUV's coming off lease in the next two years. With the switch to cars, each vehicle can represent a $3-6000 loss at the wholesale auctions. Likely no insurance to cover. This is the stuff that can put them into bankruptcy. GM doesn't have anywhere near this problem, as they are not as heavy into leasing. Plus Cerebus (those brilliant auto guys) have 51% of that loss. I always find it amazing that the finance guys never ask the auto people about the underlying grief. Anybody in auto retail could tell you this is a bomb that is already exploding.