Ford Finance stocks to trade below $20,000 after Snap Finance stocks lose 0.7%
Ford Finance (TFX) will trade below the $20 million level in the next three to five trading sessions, according to CNBC.
Ford Finance shares, which traded at $20.30, are down 0.9% this year.
Ford shares have gained 19% this month.
“We are confident that this will continue to be an ongoing event,” Ford Finance Chief Financial Officer Richard Kugler said in a statement to CNBC in response to the Snap Finance results.
“This is one of the most challenging periods for Ford Finance since the merger with Ford in 2012, and the company is still recovering from the merger.
We are pleased to continue to invest in our growth strategy.”
The Snap Finance shares are down 1.1% this week.
Snap Finance stock rose 2.2% in after-hours trading on Wednesday.
The company has also added a new asset class to its portfolio, namely a vehicle management business that has a $1.8 billion valuation.
Ford Financial will invest $100 million in the venture.
“The growth opportunities in the automotive industry are truly extraordinary, and we are thrilled to be a part of this exciting new venture,” said Tim Davenport, CEO of Snap Finance, in a release.
“These investments in Ford Finance will help us accelerate our growth, while supporting our business model and driving innovation and growth.”
Snap Finance will provide Ford Finance with a variety of tools, including an asset management business and vehicle leasing and financing solutions, according a press release.
The vehicle leasing business will allow Ford Finance to offer customers “flexible financing options,” including auto-for-hire vehicle leasing or a leasing service.
The Ford Finance car leasing and finance services are currently available to consumers in the U.S. and in more than 60 countries, and will expand to Canada, the Middle East, Africa and Latin America.
The $1 billion in Ford finance investment will support Ford Finance’s growth strategy.
“Ford Finance is a great company, and I’m very proud to be working with them to build their future together,” said Daven Port, Ford Finance CEO.
“Our goal with Ford Finance is to create a strong and growing consumer and business platform that provides the best products and services in the industry.”
Ford Finance said in an email to CNBC that the investment will provide it with “significant additional liquidity to support its growth.”
Ford Financial is part of Ford Group, a company that also owns Ford Motor Co., General Motors, Nissan Motor Co. and Fiat Chrysler Automobiles.
Ford Group also owns a variety, including Ford, Ford Motor, Ford Performance and Ford Focus vehicles.