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Ford's Secret Weapon in Building Owner Loyalty - Ford Credit

28 May 1998

Ford's Secret Weapon in Building Owner Loyalty - Ford Credit

    DEARBORN, Mich., May 28 -- Owner loyalty to Ford Motor
Company and its dealers is significantly higher for customers who
finance with Ford Credit.  New research results confirm that Ford Credit
customers are 15 percent more loyal to Ford and 41 percent more loyal to their
dealers compared to customers who finance with banks and credit unions or pay
cash.  A separate study conducted recently by an outside research firm shows
the loyalty of Ford Credit customers to the manufacturer is unsurpassed
compared to all other manufacturers' auto finance companies.
    "Our primary focus is on customer satisfaction," says Ken Whipple, Ford
Credit's chairman and CEO.  "We've initiated a series of improvements designed
to make the sometimes confusing process of vehicle financing more convenient
and easier to understand.  These research findings show that our efforts are
paying off."
    Acting on its customer-friendly philosophy, Ford Credit:

    *  offers free extensions to customers affected by natural disasters;
    *  voluntarily changed interest rate calculations to provide savings to
customers who pay off loans early -- the first major auto finance company to
do so;
    *  was the first auto finance company to offer U.S. customers on-line
account access;
    *  introduced industry-leading simplified lease and loan contracts;
    *  is the only non-prime auto loan provider to offer customers interest
rate reductions after two years of on-time payments.

    Ford Credit has particular strength with a number of customer groups.  For
example, Ford Credit's lease customers are more satisfied and more loyal than
those of any other manufacturer's finance company.  Ford Credit's higher-risk
customers -- an increasingly important market segment -- are more loyal than
those of other major auto manufacturer's finance companies.  Also, Ford Credit
provides financing to nearly half of the women who buy Ford vehicles -- a
higher share than its captive competitors.
    "Our strengths in customer satisfaction and loyalty are a competitive
advantage for Ford Motor Company and our dealers," adds Whipple.  "We have
more contact with the vehicle buyer after the sale than our dealers or any
other organization at Ford.  And we have the processes and the focus in place
to satisfy those customers, earn their loyalty and bring them back again and
again."