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FORD CREDIT REPORTS RECORD EARNINGS

 FORD CREDIT REPORTS RECORD EARNINGS
 DEARBORN, Mich., Oct. 28 /PRNewswire/ -- Ford Motor Credit Company


today reported record earnings for the third quarter and the first nine months of 1992. Chairman William E. Odom and President Edsel B. Ford II announced that net income for the quarter was $243 million, a record for any quarter, up from $160 million in the third quarter of 1991.
 Compared with the third quarter of 1991, Ford Credit's higher income reflected primarily lower credit losses and borrowing costs as well as gains from sales of receivables offset partially by lower interest rates charged to dealers and customers. Credit losses were 0.47 percent of average receivables compared with 0.87 percent for the same period a year ago. The net average cost of borrowings in the United States declined to 6 percent compared with 7.8 percent last year.
 "Ford Credit's strong performance continues to supplement Ford's automotive results during this period of economic uncertainty," Mr. Odom said. "Our efforts to improve retail and dealer customer satisfaction, to reduce credit losses and to maintain a flexible borrowing structure have enabled us to report these strong earnings."
 Ford Credit provided retail financing for 477,000 new and used cars and trucks sold in the United States during the third quarter, up 13 percent from a year ago. The company financed 38 percent of the new vehicles sold by Ford and Lincoln-Mercury dealers in the United States, and it provided wholesale financing for 77 percent of Ford Motor Company factory sales to U.S. car and truck dealers. Both shares were about equal to last year.
 Net income for the first nine months of 1992 was $683 million, up 17 percent from the prior record of $585 million established in the first nine months last year. Through September, Ford Credit provided retail financing for 1,323,000 new and used vehicles in the United States compared with 1,120,000 vehicles during the same period in 1991. On Sept. 30, Ford Credit's total assets were $56.8 billion compared with $57 billion a year earlier.
 "Indications are that 1992 will be an outstanding year for us," Mr. Ford said. "Our challenge is to maintain our momentum when the economy strengthens and as competition for vehicle financing intensifies. This will require continued emphasis on providing best-in- class service to our dealers and their customers."
 Ford Credit provides vehicle financing for about 6,000 Ford, Lincoln-Mercury, Ford Truck, and affiliated automotive dealers and for 4.5 million retail customers in the U.S., Puerto Rico, Canada and Australia. The company provides vehicle financing for non-Ford dealers, including private-label arrangements with Jaguar and Mazda, through PRIMUS Automotive Financial Services, Inc., a wholly owned subsidiary. Ford Credit also is a joint owner in Ford New Holland Credit, which provides financial services for tractor and equipment dealers in the U.S. and Canada. In addition, it directs 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- 10/28/92
 /CONTACT: Nick Sharkey of Ford Credit, 313-594-1099/
 (F) CO: Ford Motor Credit Company ST: Michigan IN: AUT FIN SU: ERN


DH -- DE003 -- 5784 10/28/92 08:35 EST
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Publication:PR Newswire
Date:Oct 28, 1992
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