GM, Ford Credit Arms May Lose Billions on Car-Price Plunge
- Manheim index could be headed for steepest decline on record
- Captive-finance and rental-car companies are at risk: JPMorgan
Photographer: Daniel Acker/Bloomberg
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General Motors Co. and Ford Motor Co.’s finance arms likely face multibillion-dollar losses linked to the dramatic drop in used-vehicle prices, JPMorgan Chase & Co. analysts said.
Prices are falling faster and steeper than JPMorgan was expecting, lead analyst Ryan Brinkman wrote in a report Monday, citing mid-month data from Manheim. The auto-auction firm’s closely watched used vehicle value index plunged 11.8% in the first 15 days of April, a decline that will easily set a record if it holds for the full month.