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Thread: FORD MOTOR CREDIT EARNS $334 MILLION IN THE THIRD QUARTER OF 2007

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    Vulture of The Western World Eric's Avatar
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    FORD MOTOR CREDIT EARNS $334 MILLION IN THE THIRD QUARTER OF 2007

    DEARBORN, Mich., November 8, 2007 - Ford Motor Credit Company reported net income of $334 million in the third quarter of 2007, down $118 million from earnings of $452 million a year earlier. On a pre-tax basis from continuing operations, Ford Motor Credit earned $546 million in the third quarter compared with $730 million in the previous year. The decrease in earnings primarily reflected the non-recurrence of credit loss reserve reductions, higher depreciation expense for leased vehicles and higher borrowing costs.

    In the third quarters of 2007 and 2006, pre-tax earnings were $341 million and $521 million, excluding the net gains related to market valuation adjustments from derivatives, which were $205 million and $209 million, respectively.

    Ford Motor Credit expects to earn on a pre-tax basis $1.3 billion to $1.4 billion this year, excluding the impact of gains and losses related to market valuation adjustments from derivatives, consistent with the previous estimate.

    "Our sound risk management practices, high-quality portfolio, strong liquidity and ongoing restructuring continue to produce solid operating results," said Mike Bannister, chairman and CEO. "As we effectively execute the fundamentals of the business, we remain on track to meet our earnings outlook."

    On September 30, 2007, Ford Motor Credit's on-balance sheet net receivables totaled $141 billion, compared with $135 billion at year-end 2006. Managed receivables were $148 billion, largely unchanged compared with December 31, 2006.

    On September 30, 2007, managed leverage was 10.1 to 1.

    Ford Motor Credit Company LLC is one of the world's largest automotive finance companies and has supported the sale of Ford products since 1959. Ford Motor Credit is an indirect, wholly owned subsidiary of Ford Motor Company. It provides automotive financing for Ford, Lincoln, Mercury, Jaguar, Land Rover, Mazda and Volvo dealers and customers. More information can be found at http://www.fordcredit.com and at Ford Motor Credit's investor center, http://www.fordcredit.com/investorcenter/.

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    Re: FORD MOTOR CREDIT EARNS $334 MILLION IN THE THIRD QUARTER OF 2007

    I think that's because of the change in bankruptcy laws. It's much harder for people to declare bankruptcy now, so instead of skipping the car payment, they're letting the bank foreclose on their house. (these are the people playing monthly-bill-roulette)

    Chip H.

    Former owner: 2012 Honda Civic LX, 2006 Honda Ridgeline RTL, 2000 Honda CR-V EX, 2003 MINI Cooper S, 1992 Honda Accord LX, 1999 Mercedes ML-320, 1995 VW Jetta GLX, 1991 Mercury Capri XR2, 1981 Mercury Zephyr, 1975 Chevrolet Impala

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    Vulture of The Western World Eric's Avatar
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    Re: FORD MOTOR CREDIT EARNS $334 MILLION IN THE THIRD QUARTER OF 2007

    Quote Originally Posted by chiph
    I think that's because of the change in bankruptcy laws. It's much harder for people to declare bankruptcy now, so instead of skipping the car payment, they're letting the bank foreclose on their house. (these are the people playing monthly-bill-roulette)

    Chip H.
    I think that's probably right; things are going from bad to worse!

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