Ford Credit, the vehicle financing arm of Ford Motor Company , will leave Chile after Ford's sales in the South American country plummeted 48.6% between January and July compared to the first seven months of 2008, newspaper Diario Financiero reported.
Ford has signed an agreement with local financing firm Forum Servicios Financieros SA, which will take over Ford's vehicle financing operations, the paper reported.
In Chile, between 35% and 50% of all new cars sold are financed by firms like Forum, GMAC, Mitsui and Masfin, amongst others. In developed countries, this can reach 60%, the paper reported.
Forum is the leader in Chile's vehicle financing business and is controlled by the Yarur and Avayu families.
These families used to represent the Ford brand in Chile in the 1990s, but Ford's decision to assume direct control of its Chilean operations caused a legal dispute that was eventually settled out of court, the paper reported.
Ford Chile officials declined to comment to the newspaper on the reasons for Ford Credit's departure.
The company sold 2,145 vehicles in Chile from January to July, representing 2.7% of the market.
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