Ford Explorer to benefit from Ex-Im program.
Ford Motor Co. will receive the Deal of the Year award from the Export-Import Bank of the United States this week at the Bank’s 36th Annual Conference.
The Export-Import Bank cited Ford for the company’s use of a $250 million Ex-Im Bank-guaranteed working capital line of credit to finance the sale of 200,000 vehicles, valued at $3.1 billion, 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.
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.
“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 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,” Seneski said.
Going forward, the Ford vehicles, eligible for export-import credits, will be manufactured in plants located in Chicago, Illinoi; Dearborn and Wayne, Michigan; Kansas City, Missouri; Louisville, Kentucky; and Avon Lake, Ohio. The models to be exported – approximately 15% of Ford’s production — include the new, highly fuel-efficient Ford Explorer crossover /SUV. According to Ford, key suppliers to the Explorer are investing in new facilities and creating more than 600 jobs in Michigan, Indiana and Illinois.
Tony Brown, group vice president, Ford Global Purchasing, noted 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 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, though it does use the federal government’s good name to borrow money.
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. The Bank has generated $3.4 billion for U.S. taxpayers over the past 5 years, bank officials said.