Unique $250 Million Facility Backs $3 Billion in Ford Car Sales, Thousands of American Jobs
WASHINGTON, March 28, 2011 /PRNewswire-USNewswire/ -- Ford Motor Company, Dearborn, Mich., will receive the Deal of the Year award from the Export-Import Bank of the United States (Ex-Im Bank) at the Bank's 36th Annual Conference, Government at the Speed of Business, in Washington, D.C., on March 31.
Ford is using a $250 million Ex-Im Bank-guaranteed working capital line of credit to finance approximately $3.1 billion in sales of over 200,000 vehicles to buyers in Canada and Mexico.
"Ex-Im Bank's line of credit will enable Ford and hundreds of its small business suppliers to support thousands of high-paying American jobs, and maintain competitiveness in global markets," said Ex-Im Bank Chairman and President Fred P. Hochberg. "The structure of the facility allows Ford and Ex-Im Bank to leverage in-transit exports."
Prior to this transaction with Ex-Im Bank, Ford had not financed its short term exports from the U.S. to Canada and Mexico. By utilizing its vehicles as collateral, Ford now is making strategic use of Ex-Im Bank's formula-based working capital line of credit. Due to the revolving structure of the line of credit, coupled with the fact that these cross border sales are both continuous and short term, Ford is able to finance more than $3 billion in sales of over 200,000 vehicles to Canada and Mexico.
"We are absolutely committed to using our U.S. manufacturing plants as a vibrant and growing source of exports around world," said Ford Credit CFO Mike Seneski. "Our great partnership with the UAW (United Auto Workers) enables us to make cars competitive with any around the world. Now our public-private partnership with Ex-Im Bank gives us competitive export financing that supports our exports and American jobs."
The Ford vehicles will be manufactured in plants located in Chicago, Illinois.; Dearborn and Wayne, Michigan; Kansas City, Missouri; Louisville, Kentucky; and Avon Lake, Ohio. The models to be exported – approximately 15 percent of Ford's production -- include the new, highly fuel-efficient crossover Ford Explorer SUV. According to Ford, key suppliers to the Explorer are investing in new facilities and hiring for more than 600 jobs in Michigan, Indiana and Illinois.
According to Tony Brown, group vice president, Ford Global Purchasing, more than 650 companies in 41 states produce parts and components for the vehicles being exported. At the same time thousands of other indirect suppliers provide other services to Ford.
Ex-Im Bank's Annual Conference on March 31st – April 1st will be held at the Omni Shoreham Hotel in Washington, D.C. The award ceremony will take place at 1:45 p.m. on March 31.
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private sector export financing at no cost to American taxpayers. The Bank provides a variety of financing products, including working capital guarantees, export-credit insurance, and financing to help foreign buyers purchase U.S. capital goods and services.
By charging fees and interest on all loan related transactions, Ex-Im Bank is self-sustaining. It is able to cover all operation costs and potential losses while also producing revenue. The Bank has generated $3.4 billion for U.S. taxpayers over the past 5 years.
SOURCE Export-Import Bank of the United States