Auto Credit Express Blog
September 26, 2008
Mazda to switch from Ford Motor Credit to Chase Auto
Email sent to dealers outlines plans for the switch that is set to take effect on October 1st.
The game of musical lender chairs continues
Normally, here at Auto Credit Express, this kind of news would seem earth-shattering. But in a year in which HSBC pulled out of the auto lending market, GMAC stopped leasing vehicles in Canada and Chrysler Credit abandoned leasing altogether, the decision by Mazda North America to abandon Ford Credit and align itself with Chase Auto Finance seems tame by comparison.
The change will affect all leasing and finance operations for Mazda’s 662 franchises that had previously used Mazda American Credit. According to an article that appeared in Automotive News, the reasoning behind the switch was outlined in an email to Mazda dealers sent by Mazda CEO Jim O’Sullivan on Wednesday, September 24th. In the email, O’Sullivan stated, “This action has mutual benefits in the tough business environment and tight credit markets that are challenging the entire industry.”
No changes for other franchises
Despite the defection of Mazda, Ford Motor Credit will continue to service Ford, Lincoln, Mercury, Volvo, Jaguar and Land Rover dealers (Jaguar and Land Rover until the end of May, 2009).
According to the Automotive News article, Ford Credit spokesperson Brenda Hines commented on the decision by stating that it would allow Ford Motor Credit “to focus on supporting the other Ford Motor Co. brands.”
