Ford to Spin Off Interest in Loan Business

Detroit-based Ford Motor Co. said it will spin off its 80% interest in Associates First Capital Corp. by distributing its 279 million shares of stock in the company to Ford shareholders. Ford Chairman Alex Trotman said the move is part of Ford’s effort to focus on the automotive business. Associates is one of the biggest players in the market for home mortgages and home-equity loans and is among the largest publicly held finance companies in the nation. Trotman said in May that allegations of unethical lending practices by Associates have been overblown but were being investigated. Several people told Ford directors, executives and shareholders at the company’s annual meeting that they had lost their homes to the Dallas-based company because of such practices.