Ford to reduce its current debt load by about $4 billion
By Andrew C., 30 Aug, 2010. 0 Comments
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Ford announced today that it will reduce its current debt load by $4 billion. The American manufacturer will pay $3.8 billion owed to the UAW Retiree Medical Benefits Trust ahead of schedule as well as $255 million in dividends on preferred securities starting July 15. For those who don't know, by the end of the first quarter, Ford owed about $34 billion in automotive debt as the result of $23 billion in loans the company took out in 2006. The payment made today, will reduce the debt owed to about $27 billion. "We expect to continue to improve our balance sheet as we deliver on our plan. Importantly, our business results make it possible to take these actions while still accelerating the investments we are making in our business to serve our customers with the very best cars and trucks." said Ford CEO Alan Mulally.
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