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FORD CREDIT ANNOUNCES RECORD SECOND-QUARTER EARNINGS

 FORD CREDIT ANNOUNCES RECORD SECOND-QUARTER EARNINGS
 DEARBORN, Mich., July 29 /PRNewswire/ -- Ford Motor Credit Company


today reported record earnings and continued growth in retail and wholesale financing for the second quarter of 1992. Chairman William E. Odom and President Edsel B. Ford II announced that net income for the period was $230 million, up $43 million or 23 percent from the second quarter of 1991.
 Compared with last year, Ford Credit's higher second-quarter net income reflected primarily improved net interest margins and lower credit losses. The margin improvement resulted from the decline in Ford Credit's net average cost of borrowings in the United States. Borrowing rates were 6.5 percent for the quarter compared with 7.9 percent a year ago. Credit losses were 0.49 percent of average receivables, including operating leases, compared with 0.75 percent for the second quarter of 1991.
 "These results reflect the hard work of the Ford Credit team and our dedication to improve our profit structure," Mr. Odom said. "The strong performance highlights the fact that our initiatives to improve margins and to control costs and credit losses have been effective. The reduction in credit losses resulted from continuing efforts to reduce delinquencies and from fewer repossessions.
 "We also are encouraged by the continuing efforts in the U.S. to stimulate economic growth through lower interest rates," Mr. Odom continued. "The recent rate reductions should increase automotive industry sales, and Ford Credit should have additional opportunities to expand its volume of financing."
 During the second quarter, Ford Credit provided retail financing for 458,000 new and used cars and trucks in the United States, up 20 percent from a year ago. Ford Credit financed 37 percent of the new vehicles sold by Ford and Lincoln-Mercury dealers in the U.S., an increase of two percentage points from the second quarter of 1991. It also provided wholesale financing for 77 percent of Ford Motor Company factory sales to U.S. car and truck dealers, compared with 73 percent last year.
 "Ford Credit continues to be a leader in reducing retail automotive financing rates in response to the general decline in interest rates. Our rate reductions, combined with other enhancements to our financing programs, demonstrate Ford Credit's commitment to provide attractive financing to every creditworthy buyer," Mr. Ford explained. "Customer satisfaction is our highest priority, and we continue to be best-in- class by providing high-quality products and services with superior value to our dealers and their retail customers."
 Net income for the first half of 1992 also was a record $440 million, up $15 million or 4 percent from the first half of 1991. Through June, Ford Credit provided retail financing for 846,000 new and used vehicles in the U.S., compared with 699,000 vehicles during the same period a year ago. At June 30, Ford Credit's total assets were $57.3 billion, compared with $55.6 billion a year earlier, reflecting the increase in vehicle financing.
 Ford Credit provides vehicle financing for about 8,500 Ford, Lincoln-Mercury, Ford Truck, Ford New Holland, and affiliated dealers and 4.5 million of their customers in the U.S., Puerto Rico, Canada and Australia. The company also provides private-label vehicle financing to non-Ford dealers through its PRIMUS Automotive Financial Services, Inc. subsidiary. In addition, it oversees the activities of the international vehicle financing affiliates of Ford Motor Company in 19 other countries, and it manages the insurance businesses of The American Road Insurance Company.
 Ford Credit is a wholly owned subsidiary of Ford Motor Company (NYSE: F) and is part of Ford's Financial Services Group.
 -0- 7/29/92
 /CONTACT: Nick Sharkey of Ford Motor Credit Company, 313-594-1099/
 (F) CO: Ford Motor Credit Company ST: Michigan IN: FIN AUT SU: ERN


JG-ML -- DE003 -- 4428 07/29/92 08:37 EDT
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Publication:PR Newswire
Date:Jul 29, 1992
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