Ford: We're in Good Shape, No Loans Needed!

Even though the whole automotive industry struggles to counteract the global recession with all kinds of cost-cutting measures, Ford Motor Co says it still doesn't need financial support from the United States government. Ford's chief executive Alan Mulally said the company is still in good shape and is continuing its restructuring plan, aiming to revamp the production line with new small-displacement and fuel-efficient models, previously sold in European markets.

Back in 2006, Ford borrowed more than $23 billion from the United States government and used a number of assets as security, according to CNN. This is the main reason for Ford's current acceptable situation, Alan Mulally told the aforementioned source.

"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 said according to CNN. "Right now, I think with everything planned in the fiscal and monetary policy, I am very comfortable that we are going to start to turn things around through the second half of the year.”

More importantly, Mullaly explained that Ford's January sales are similar to the ones recorded in December when the company reported a drop of nearly 36 percent compared to the same month of the previous year.

Ford's main two rivals, General Motors and Chrysler have already received support from the government, with a total of $17.4 billions approved for the two carmakers that are now required to provide a restructuring plan by February 17. Even though Ford was initially included in the Detroit 3 alliance who demanded financial aid, the company later withdrew from the group, saying that its current financial status should be enough to keep production on the floating line.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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