Ford is cutting car debt by 9.9b Dollars

Posted on Tuesday, 7 April 2009 , 13:04:29 byEmil

Filed under forddebtcutmoneyuawFord

Ford is cutting car debt by 9.9b Dollars

On Monday Ford announced it has slashed all its auto debt with 38 %. This translates into 9.9 billion Dollars in Blue Oval savings and is only the newest in some price-cutting steps, helping the Dearborn-based carmaker return to a more profitable terrain.

Automotive News says Ford is using a mix of cash plus common stock for reducing the debt by 9.9 billion Dollars. At the 2008's end, the automotive debt of Ford totaled 25.8 billion Dollars. Ford has reached some deal also with UAW to reduce greatly the costs associated with the retiree healthcare. So, these indications suggest the Ford – UAW deal will be saving the firm 500 million Dollars per year.

'By substantially reducing our debt, Ford is taking another step toward creating an exciting, viable enterprise' Alan Mulally Ford CEO affirmed in a statement. 'As with our recent agreements with the UAW, Ford continues to lead the industry in taking the decisive actions necessary to weather the current downturn and deliver long-term profitable growth'. The only was Ford from the Big Three that didn't take a bailout loan from the government.