Ford finance arm to cut 200 jobs in Franklin

Ford Motor Credit Co. plans to layoff 200 employees at its business center in Franklin by the end of March as part of a plan to cut 1,000 jobs nationwide this year.

The finance arm of automaker Ford said the cuts are necessary because of fewer car sales and a move to handle financing arrangements only for Ford cars rather than some other brands as well. Ford has sold its interest in Jaguar and Land Rover, for instance, and reduced its stake in Mazda.

Financing of Volvo sales will move to another provider, too, because Ford expects an agreement by the end of this month to sell that brand to a Chinese automaker.

“This will help us address current and expected business conditions,” said Ford credit spokeswoman Margaret Mellott of the job cuts.

Ford Motor Credit — once known as Primus here — helped spark commercial development in the Cool Springs area during the 1990s. Last year, Ford Motor Credit cut 20 percent of its U.S. workforce with just under 1 percent of those cuts affecting the Franklin office, Mellott said.

The latest layoffs will leave Ford Motor Credit with 850 employees in Franklin, keeping it in the ranks of Williamson County’s 10 largest private-sector employers.

“It’s unfortunate that people lose their jobs, but it’s less a reflection on our community and more of a reflection of a restructuring that’s going on inside the company,” said Matt Largen, director of Williamson County’s Office of Economic Development.

Last week, Moody’s Investors Service upgraded its rating of $43 billion worth of Ford Motor Credit’s senior unsecured debt, citing the finance arm’s improved capital position as it paid down debt amid an improving economy.

“Delinquency levels have started to level off for the company, and as the economy improves we expect their earnings to grow as credit costs decrease,” said Mark L. Wasden, a senior credit officer with Moody’s.

Wasden said the restructuring makes sense considering a lower volume of U.S. car sales and Ford’s move away from certain product lines. “For the company to maintain it’s profitability going forward, it has to resize its employment level as it shrinks its business scale.”