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 ...
Good.
F 150
Limped home a few times (no thanks to Operator Error) but always got/gets me home.
Hard to beat an F150 IMHO
I love my Dodge Ram, but should I be fortunate enough to afford a new car in the next few years, Ford has moved ahead of my beloved Mopars. The Fusion looks interesting and I’ve heard a lot of good things about it. I still like Hondas and Toyotas better, but they’ve gotten so brutally expensive.
}:-)4
My guess it they are doing just that.
My tag line says Mulally as VP, I am have been saying for eon's do not bet against this man, he is brilliant. I may have met him yeas ago in another time, but that is a story for another day.
IMHO books will be written comparing Ford's turn-around under Mulally to Chrysler under Iococca.
Mrs. jimfree had been craving a Saturn Sky for several years. The Obama admin tampering has turned us off of GM after three previous Saturns. We are looking at the Mustang converible now.
How is GM going to compete with Chery Motors? This article’s source aside, the fact that Chery already has plug in hybrids on the street for half the cost of the Volt will sink GM for good. I’m willing to bet that GM scraps the Volt and rebadges Chery cars instead. Perhaps Chery even obtains GM inexchange for failing US Treasuries.
http://www.treehugger.com/files/2008/04/chinas_new_hybrid_electric_cars.php
One more thing....
Ford Family owns 40% via class "B" stock. As liberal some of the loons in that clan are, no way are they going to let this snot nosed interloper we have as a President mess up their families historical contributions to America and their family name.
If our Government would stop dicking around with our Diesel Fuel, we would have had a lot more turbo diesel based cars several years ago.
Americans talk a good game, they say they want them, and when they get here they do not buy them. I do not blame them for not bringing them.
IMHO watch for 2 advancements that will make diesels boat anchors, google them both.
1.) Homogenous Continous Compression Igniton HCCI and...
2.) Gaseous Fuels, ( watch AU and NZ in particular...)
If I was Ford (or hell, Honda & Toyota for that matter), I would sue GM and/or the federal government for giving its competitors a competitive advantage in the marketplace. Ford doesn’t have the luxury of federal subsidies, or the federal government “standing behind its warranties”, etc. I would be furious if I were Ford. After all, they are being punished for doing the right thing.
Ford is the only independent US automaker, the other are now government subsidiaries. I would be proud to own a Ford.
Yes it is! :0)
I am jealous. The company does need a new f150 4x4 this year though.
Love your handle. I rewarded Smith & Wesson this Saturday too by purchasing a S&W .357 Magnum Model 27 Classic with a 4” barrel.
Air Canada petitioned the Canadian government for a massive bailout back then -- because the U.S. bailout of U.S. airlines put them at a competitive disadvantage for international flights between the countries.
The Canadian government was ready to give them what they asked for . . . until someone pointed out that for the $10 billion Air Canada was seeking, the Canadian government could have save a couple of billion dollars by purchasing every share of company stock and owning the airline in its entirety.
Under “equal protection under law”, can I complain to my Congressman that my Ford warranty isn’t backed by the full faith and credit of the US gubmint? Barry, by edict, said the GM warrant is being backed. Just sayin’.....
Proud owner of a Ford Fusion here.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.