A new national leasing company which will specialize in finance leasing has been formed in Chicago.

The company, Litsinger-Bell Leasing Co., expects to lease between 5,000 and 6,000 vehicles in 1964. The company's first contract, for $500,000, was signed with Universal Food Co. of Milwaukee (Wis.) for 350 vehicles.

Litsinger-Bell will operate as a member of the Ford Authorized Leasing System. A $5,000,000 line of credit has been extended by Ford Motor Credit Co.

Principals in the new organization are Fred G. Litsinger, a longtime Chicago Ford dealer, and John A. Bell, president of J. A. Bell & Co., a Chicago firm which specializes in equipment and auto-will serve as board chairman and motive finance leasing. Litsinger treasurer and Bell as president and general manager.

Auto industry observers consider the $5,000,000 line of credit by Ford Motor Credit Co. highly significant. Some consider it Fords answer to the direct leasing programs instituted by Chrysler Corp. and Studebaker Corp. They feel that Ford intends to bolster its position in the leasing field by financing key dealers rather than going the direct leasing route.

Litsinger's auto dealership has been active in leasing for a number of years. Under present plans, the dealership will continue current leases, but it hopes to switch over clients to the new company as contracts expire.

Howard W. Cook, national fleet sales manager for the Ford division of Ford Motor Co., told AUTOMOTIVE FLEET that Litsinger-Bell leasing will be one of the top five FALS dealers in the country.

"We expect great things from Fred Litsinger and John Bell," Cook said.

While the new company will concentrate on finance leasing, Litsinger said that other types will be available if requested. The company will also lease non-Ford vehicles.

"We already have enough firm proposals to eat up our $5,000,000 line of credit," Litsinger said.