Ford reduces debt by 38%

[fozzie 41]

The US carmaker Ford has seen its shares rise by nearly 15% in New York, after saying it had cut $9.9bn(£6.7bn) from its $25.8bn debt.

The 38% debt reduction will reduce Ford's interest payments by more than $500m a year.

It said the move, along with previous agreements with the United Auto Workers (UAW) union, would "substantially strengthen Ford's balance sheet".

In morning trading Ford's shares were up 14.5%, or 47 cents, at $3.72.

'Strong positive'

"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," said Ford chief executive Alan Mulally in a statement.

Ford is the only one of the big three US carmakers that has not taken government bail-out money to enable it to continue operating.

"Clearly it is a strong positive for the company, the ability to reduce liabilities and the interest burden," Fitch Ratings managing director Mark Oline said.

"At this point the interest of the bondholders and equity holders are pretty much aligned. Both want Ford to survive the current environment."

http://news.bbc.co.uk/2/hi/business/7986272.stm

[Nagishkaw 510]

Fix 0r Repair Daily

[SuperDuper! 230]

If an investor had the nads to buy 10K Ford shares at $1.01 earlier this year, he would have been up a tidy sum. It takes guts to make a trade like that. Not ez.

[GaryC 7]

It won't be long before the "big three" will be the "big one". Ford did a smart thing by not taking any buy-out money.

[mawilson 2,133]

It won't be long before the "big three" will be the "big one". Ford did a smart thing by not taking any buy-out money.

[fozzie 41]

It won't be long before the "big three" will be the "big one". Ford did a smart thing by not taking any buy-out money.

I think fords presence in Europe will be their saviour.

[Mr. Big Dog 10,747]

Fix 0r Repair Daily

Found On Road Dead

[GaryC 7]

Say what you want, I love my Ford. Best car I ever had.

First On Racing Day

[SuperDuper! 230]

Chrysler's gotta go! When is the last time you heard about someone bragging about the cool Chrysler they bought. The Viper, and CHallenger, but thatz about it and rarely seen on the road.

Let GM make just 3 lines: Corvette, Cadillac, Chevy. Let Honda buy the Cadillac name and do it right!

[one...two...tree 2,762]

Way to go, Ford. Their Fusion and Flex models have gotten good reviews. I hope they will continue to build more smaller, more fuel efficient as well as safe and reliable cars.

[fozzie 41]

Way to go, Ford. Their Fusion and Flex models have gotten good reviews. I hope they will continue to build more smaller, more fuel efficient as well as safe and reliable cars.

My uncle worked for ford i England and both my parents drove them for years without any problems. The safety issue is also important and the safety ratings include the safety of pedestrians. A GM or Chrysler car only looks after the drive and passengers. F*** the pedestrians. Might is Right.

[spookyturtle 9,465]

That's too bad. Ford might survive and upset all the VJ American auto haters here. Most here have said time and again that they don't care if the American auto industry fails. Shame on you, you know who you are.

[fozzie 41]

That's too bad. Ford might survive and upset all the VJ American auto haters here. Most here have said time and again that they don't care if the American auto industry fails. Shame on you, you know who you are.

If they survive, without taking bailout money, then they survived through a sounder business model and by offering a better product than the competition. Thats what America and Capitalism is all about. If they fail they fail, poor business decisions will be the downfall of GM.

[amerasianlove 0]

Way to go, Ford. Their Fusion and Flex models have gotten good reviews. I hope they will continue to build more smaller, more fuel efficient as well as safe and reliable cars.

Fusion is very popular car. I am driving one and I LOVE IT!

Way to go FORD!!!

[웃 910]

If an investor had the nads to buy 10K Ford shares at $1.01 earlier this year, he would have been up a tidy sum. It takes guts to make a trade like that. Not ez.

Rumor is Ford may replace General Motors on the Dow 30 soon. PS: I am an "investor" and had a radical day today. Got into a jolly stock, symbol SGIC, at $0.23 cents a share around 11am. After my purchase it quickly (within minutes) shot up to $0.30 cents and I held. It later dropped back down to 23 cents at which point I thought about getting out before disaster struck. Fortunately I hung on (check out what happened in the last hour of trading). I sold 10 minutes before the closing bell at 49 cents for about a 110% profit. It was really jolly!!! I got 4,000 shares (didn't feel comfortable with any more than 1k invested in this penny stock).

....I didn't have the guts to buy Ford or GM near their lows but I did buy GM last August at around $10 (ended up selling a few days later for a loss).