Ford Credit, GMAC gain
DETROIT - Ford Motor Credit Co. and General Motors Acceptance Corp. reported higher earnings for the second quarter. Ford Credit had net income of $335 million for the quarter, 12 percent higher than the year-ago period. Ford Credit said it had higher volumes, improved credit loss performance and lower taxes, partially offset by lower margins. GMAC had net income of $391 million, up 7.1 percent. GMAC said its mortgage operations led the increase. DaimlerChrysler reports its second-quarter earnings Thursday, July 29.
BENTLEY CAPTIVE DEBUTS
DETROIT - VW Credit Inc. announced the creation of Bentley Financial Services, a captive finance provider based in Auburn Hills, Mich. 'We have a vested interest in delivering the total Bentley experience,' said VW Credit President Klaus-Dieter Schuermann. Bentley Financial will offer retail loans and leases for Rolls-Royce and Bentley customers, as well as floorplanning, mortgages and capital loans for dealers. Parent Volkswagen AG bought Rolls-Royce Motor Cars Ltd. last year, but rival BMW AG takes over the Rolls-Royce brand in 2003.
LOJACK EARNINGS FALL
BOSTON - LoJack Corp. of Dedham, Mass., reported net income of $2.2 million for the fiscal quarter ending May 31. That was 34.3 percent below the year-ago period, even though revenues rose 11 percent to $22.5 million. The year-ago comparison was exaggerated by a one-time gain a year ago on the sale of a marketable security, the company said. Chairman C. Michael Daley said that higher ad spending also brought down earnings. The company is expanding into new markets. LoJack makes an aftermarket anti-theft device that helps police track stolen cars.
EAGLE TO CLOSE
CHICAGO - Subprime auto lender Eagle Finance Corp. of Gurnee, Ill., said it will file for Chapter 11 bankruptcy protection in the third quarter and close for good, part of an agreement among Eagle and its creditors. Eagle Finance stopped originating new loans at the end of 1997, but it had continued to service loans for itself and other lenders. The company sold its assets to Ameristar Financial Co. earlier this year.