Ford Says it Doesn't Need Short-term Loans from Bailout

Dec. 19, 2008
Renewed request for $9 billion line of credit

Ford Motor Co. said on Dec. 19 it would not need a short-term loan from the government, but lauded the Bush administration's decision to extend aid to its cash-strapped competitors and renewed a request for a $9 billion dollar line of credit.

"We do not face a near-term liquidity issue, and we are not seeking short-term financial assistance from the government," Ford CEO Alan Mulally said.

Ford said it hoped to restructure its business without government assistance but requested the $9 billion line of credit as a "critical backstop or safeguard against worsening conditions."

"All of us at Ford appreciate the prudent step the administration has taken to address the near-term liquidity issues of GM and Chrysler," Mulally said. "The U.S .auto industry is highly interdependent, and a failure of one of our competitors would have a ripple effect that could jeopardize millions of jobs and further damage the already weakened U.S. economy."

Ford said that while it is working to aggressively reduce costs it will continue to invest heavily in product development, including approximately$14 billion over the next seven years to improve the fuel economy of its vehicles. Ford said the comprehensive restructuring plan it presented to Congress will allow it to return to profitability by 2011.

"While we clearly still have much more work to do, I am more convinced than ever that we have the right plan that will create a viable Ford going forward and position us for profitable growth," Mulally said.

Copyright Agence France-Presse, 2008

Popular Sponsored Recommendations

How Digital Twin Technology is Empowering Manufacturers

Sept. 27, 2023
This FAQ delves into why this technology offers business value and considerations toward implementation.

Discrete and Process Manufacturing 2024 Trends and Outlook for North America

Oct. 29, 2023
Manufacturers are reaping the benefits of automation and cloud-based solutions. Discover what is driving today's industry trends and how they can shape your growth priorities ...

The Manufacturer's Guide to Transforming the Service Experience.

Sept. 11, 2023
Learn how a unified data platform can make your service experiences more efficient while reducing costs. Turn your service center into a profit center and map your service transformatio...

Smarter Savings for Manufacturers - Guide

Sept. 11, 2023
Boost your manufacturing sales and revenue while reducing costs. Learn how one platform can help your business be more agile and productive in today's market.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!