Posted on 04/06/2009 8:38:45 AM PDT by frogjerk
DETROIT (Reuters) - Ford Motor Co (NYSE:F - News) has reduced its automotive debt by 38 percent, or $9.9 billion, part of a series of moves to bolster its finances amid a deep industry downturn, sending its shares up more than 11 percent.
The debt reduction, which Ford estimates will trim its annual cash interest expense by more than $500 million, is the latest evidence that Ford is powering ahead of domestic rivals General Motors Corp (NYSE:GM - News) and Chrysler in restructuring to survive the lowest U.S. auto sales in three decades.
Ford, the only U.S. automaker that has not sought emergency U.S. government loans, is using $2.4 billion in cash and 468 million shares of its common stock to reduce its outstanding automotive debt by $9.9 billion from $25.8 billion at the end of 2008.
Ford was also the first to reach an agreement with the United Auto Workers union that would slash cash payments for its retiree health care. GM and Chrysler remain in discussions with the UAW to restructure their remaining obligations into a retiree health-care fund.
(Excerpt) Read more at finance.yahoo.com ...
That is one of the two stocks keeping my portfolio on balance today.
I don’t care.. Had a bad experience with Ford...
I own two Fords and would buy another.
Ford was smart to reject the $ dangled before it as bait. There just might be a Ford Motor Company in 20 years. GM and Chrysler will be trivia answers along with Studebaker and British Leyland.
Good for them. I will reward them by purchasing a 2010 Shelby Cobra GT500 Coupe.
Same here a F-450 Pickup.
If GM and Chrysler go into bankruptcy, Ford may be at a disadvantage unless they can get the same reductions in costs from the UAW, retirements, etc.
To an extent, they already have.
I wish they had a car that interested me.
2 F150s here.
The real concern is the fact that Government Motors won’t accept competition from Ford while they have the power to regulate Ford into submission.
We love our escape.
Of course the question is, how will Ford compete against the federal government? The “owners” of GM will be making all the rules under which Ford will be required to operate. Won’t THAT be fun!
Already Done, Google it, they lead the way....
This is like me rewarding Dairy Queen by purchasing a cherry sunday with nuts and whipped cream on top... ;-)
Fiesta, Transit-Connect (these are Euro Transplants) and new Taurus on the way.
Ditto new Hybrid Fusion/Milan
According to the Car Mags and Detroit Newspapers 4 more Euro-Cars after that...
Google them: Kouga, C-Max, Mondeo, and S-Max
Ford should be congratulated that they refused any bailout money from the government. Ford has a much better chance than either GM or Chrysler of surviving and being able to compete in this global economy. Ford may have to take some hard steps to get to that point but they seem to be in a better position than the other two to get the job done. Ford should first think of their company and its survival and take whatever necessary steps accordingly. Everything else should come second.
Ford has a better idea. Screw 0bama.
Lower debt is always a good idea, always.
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