Ford Finance Deals With Tesla For Financing Deals With Yahoo Finance
Ford Finance deals with Tesla for financing of new Ford Fusion Hybrid, Ford Focus electric car, and Ford F-150 pickup truck.
This is a great day for Ford and for the thousands of Ford Motor Co. employees who have made this a priority.
Ford Finance is proud to announce that it has reached an agreement to sell $3.6 billion in Ford Financing to Yahoo Finance.
Ford will use its financing arm to finance the purchase of $1.5 billion of the new Ford Focus Electric, Ford Fusion hybrid, and the $1 billion Ford F150 pickup trucks.
Ford’s financing arm will work with Yahoo Finance to invest $3 billion in Yahoo Finance, including $1 Billion in a new financing facility.
Ford is the first automaker to receive such a significant infusion of financing in a decade.
As part of the agreement, Yahoo Finance will acquire the assets of Ford Finance and pay a cash consideration of $3,5 billion.
Ford Finances assets include: $1,721.5 million of Ford’s Ford Fusion portfolio of vehicles, including the F-Series, F-250, F150, and F-350; $1 million of assets of the Ford Focus Hybrid portfolio of electric vehicles; and $500 million of the company’s Ford F1 production vehicle portfolio.
Yahoo Finance also will acquire a total of $5.2 billion of Ford finance receivables, including Ford’s $1 and $5 billion cash balance in Ford Finance receivable investments.
Yahoo will use the cash to invest in Yahoo’s core business, including Yahoo Finance and Ford Finance.
“Ford Financing is an important component of our broader strategy to drive innovation and innovation-driven growth for our company,” said John Leopold, President and Chief Executive Officer of Ford Financial Services.
“We believe this transaction will help drive the next stage of our transformation as we begin to take Ford in new directions in our global operations.
We look forward to working with Yahoo and other leading automotive finance companies as we take Ford to a new level of profitability.”
The company said in a statement that the transaction is expected to close in the second quarter of 2019.
Ford finance plans to use the $2.4 billion in net proceeds from the transaction to help fund investments in Yahoo, including investing in new Ford product lines.
The company plans to work with both Ford and Yahoo finance to create a more efficient financing structure for Ford customers.