FCA to wind down, 160 jobs to go

Up to 160 jobs will be lost after Ford Credit Australia announced it is winding down part of its Australian operation.

The decision, which comes as the Australian car industry faces its worst sales performance in 30 years, means private car buyers will no longer be able to seek finance from Ford Credit Australia (FCA) after February 28, Fairfax newspapers reported on Thursday.

Volvo, Land Rover, Jaguar and Mazda dealerships, some of whom use FCA's retail finance, will also be affected, while regional dealerships depend on Ford Credit for retail finance, The Age newspaper said.

FCA would continue to support existing dealers' wholesale financing arrangements, spokeswoman Libbey Meredith said.

"This was a difficult, but necessary, decision," Ms Meredith said in a statement.

"Australia has a well developed financial services marketplace and other companies are expected to provide financing for retail customers."

One of Melbourne's largest Ford dealership owners said it would sell Mitsubishis and Toyotas by the end of 2009.

"I reckon about a third of Ford dealerships around the country are thinking the same thing," the owner told The Age.

"The company is falling into disarray, and customers just don't want the Ford product."

Meanwhile, acting Victorian premier Rob Hulls says FCA's decision to stop offering retail finance at dealerships will not put people off buying new cars.

Mr Hulls said it would take time to see the flow-on effects of the decision but the car industry remained buoyant.

"The credit company associated with Ford has decided not to continue to operate and it won't stop people buying cars I expect," he said.

"I think the Victorian car industry is healthy, I don't think there's much doubt about that, and it continues to be a huge employer in this state."