P&A Providers & Administrators
MenuMENU
SearchSEARCH

Ford Wins Exemption in Financial Overhaul Bill

June 26, 2010
2 min to read


WASHINGTON - Ford Motor Co. and three other industrial companies won the right to continue to hedge financial risks, as part of a compromise reached Friday on the federal financial overhaul bill, The Detroit News reported.


One last sticking point was whether Ford, Caterpillar, John Deere and Boeing would be able to use financial instruments known as derivatives to hedge risks.

Ad Loading...


U.S. Rep. Gary Peters, D-Bloomfield Township, lobbied his Senate colleagues to get them to accept his language that would allow firms that have a captive finance company -- Ford owns Ford Motor Credit -- to continue to use the financial instruments.


"They aren't speculating," Peters said Friday in an interview. "They are not part of the casino-type atmosphere that we saw on Wall Street. What they are doing is legitimately hedging business risk. They don't try to make profits on crazy derivative synthetic strategies."


Derivatives are financial instruments whose values are determined by the future price of a commodity or other financial entity.


Some Democrats wanted to give the manufacturers two more years to use the derivatives.

Peters said it was "clear there are folks who are legitimate end users" of derivatives. He noted that Ford would use them to hedge against swings in the price of steel or the value of foreign currencies.

Ad Loading...


If the effort had failed, Ford would have been at a competitive disadvantage with foreign automakers, Peters said, and would have had to set aside more money to account for the risks.


Congress is regulating the $600 trillion derivatives market. Banks will be forced to spin off or end operations that trade most derivatives.

More Industry

Orange electric vehicle charging station.
Industry•by Lauren Lawrence•October 20, 2026

Charger Network Growth Slows

Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.

Read More →
Fan of $100 bills atop a white envelope
Industry•by Hannah Mitchell•October 13, 2026

Lenders, Consumers Take on More Auto Loan Risk

September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.

Read More →
Red type R Honda civic parked on road.
Industry•by Lauren Lawrence•October 13, 2026

Next-Gen Hybrids in Sight

Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.

Read More →
Ad Loading...
Dodge ram emblem on orange vehicle exterior
Industry•by Hannah Mitchell•October 6, 2026

Gem State Stores Change Hands

A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.

Read More →
Graphic of model car driving on fake road.
Industry•by Lauren Lawrence•October 6, 2026

Charging In Motion

Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.

Read More →
front grill of a Ford truck with blue Ford emblem
Industry•by Lauren Lawrence•September 30, 2026

Twin Cities Stores Sell

Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.

Read More →
Ad Loading...
Diesel engine on a production line in a factory
Industry•by Hannah Mitchell•September 29, 2026

U.S. Auto Sales Still Below Prepandemic Levels

Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.

Read More →
Front of red tesla car.
Industry•by Lauren Lawrence•September 22, 2026

The Powertrain Shift

Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.

Read More →
White BMW SUV driving on road.
Industry•by Hannah Mitchell•September 15, 2026

Achromatic Autos

The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.

Read More →
Ad Loading...
Line of eclipse SUVs in parking lot.
Industry•by Lauren Lawrence•September 15, 2026

Used-Vehicle Affordability Worsens

Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.

Read More →