Ford does not need U.S. government loans: CEO

Darkoak · Jan 25, 2009

NEW ORLEANS (Reuters) - Ford Motor Co has enough liquidity to fund its restructuring plan and despite the deep downturn in auto sales still sees no need to ask for government loans, Chief Executive Alan Mulally said on Saturday.

"We don't want to borrow any more money. We have sufficient liquidity to fund our transformation plan, which means our business is in a relatively good shape," Mulally told reporters on the sidelines of the National Automobile Dealers Association convention.

Ford's U.S. rivals, General Motors Corp and Chrysler LLC, won approval in December for $17.4 billion of government loans to avert collapse. Ford has asked for access to a $9 billion credit line from the U.S. government but has not sought loans. Washington has not yet responded to Ford's request.

Mulally said Ford was in a better situation than its rivals because it borrowed more than $23 billion in 2006, using most of the company's assets as security, including its well-known blue oval logo.
Click to expand...

http://www.reuters.com/article/newsOne/idUSTRE50O00K20090125

This a strategic move by Ford to show strength on their part while their US competitors show weakness.

Log in / Register

Forums

Ford does not need U.S. government loans: CEO

Darkoak Gone for good.

Share This Page

Log in / Register

Useful Searches

Ford does not need U.S. government loans: CEO

Darkoak Gone for good.

Share This Page