An absence of bad news on lease residuals helped Ford Credit boost results in the second quarter, parent Ford Motor Co. said today.
"Lease residuals are flat. I think that's a victory. That's been one of the biggest headwinds for the business," Bob Shanks, Ford Motor CFO, said during a conference call with investors. Lenders can lose money on leases if actual auction values are lower than expected when the leases were originated.
Overall, Ford Credit's pretax profit was $619 million for the second quarter, up 55 percent year over year. Net income was $446 million, up 51 percent, Ford Motor reported.