Ford Moves To Repay $3 Billion of a Loan Ahead of Schedule

[Purveyor]

General Motors isn’t the only automaker paying off outstanding debt ahead of schedule. The Ford Motor Company is expected to pay a sizable chunk of its outstanding loans on April 6.

According to a filing with the U.S. Securities and Exchange Commission, Ford will repay creditors roughly $3 billion in April. That payment will cover just under half of a $6.7 billion credit note. Although not technically due until 2013, the move is part of Ford’s ongoing effort to reduce debts and strengthen its balance sheet.

By paying off the $3 billion, Ford will reduce its overall debt to just under $32 billion, and significantly reduce the company’s interest payments. Ford executives acknowledge that the $32 billion of debt the company is left with is still too much, and the automaker is working to further reduce its operating costs.

Eliminating that $32 billion hurdle will allow Ford to become more fiscally competitive with both Chrysler and GM. Although Ford has found more success in the market than either firm, the other “Detroit Two” were able to virtually shed their debt during the bankruptcy process. This may seem to be an economic disadvantage, but it has considerably improved the automaker’s public perception.

Source: The Detroit News

http://rumors.automobilemag.com/6636752/news/ford-moves-to-repay-3-billion-of-a-loan-ahead-of-schedule/index.html

[DCBob]

1. Obama saved the US auto industry..

No rightwinger will admit it though.

[howaboutme]

3. Anything that could save US industry is a plus.

He also saved the NYC banking business which is a negative imho, but not a plus. Banking has always been about ripping off the majority so that a few could profit.

[harkadog]

5. This is about Ford. Ford didn't take government loans.

Does pointing out that fact make me a RWer?

[DCBob]

8. Yes, I believe you are right. I misread the article..

However the loans to GM and Chrysler have kept them afloat, and GM is paying theirs back ahead of schedule. I still think the loans were the right thing to do. The US needs an auto industry.

[NNN0LHI]

7. Limbaugh was telling his listeners to boycott American auto companies

Thats all I needed to know.

Don

[B Calm]

9. Why does Limbaugh hate the United States of America?

[doc03]

11. Limbaugh hates Union workers like all Republicons n/t

[B Calm]

17. but, I work for a non union company that supplies bumpers to Detroit!

[Cha]

2. This is such great news..it could

have gone another way.

[4lbs]

4. It remains to be seen whether voters will remember this come November 2010 and 2012.

After all, it was the Repukes who were saying that we should just let the American auto industry fail and that Toyota (ahem), Honda, and Nissan could pick up the slack.

You know, the same Repukes that had Toyota, Honda, and Nissan auto plants in their states.

[harkadog]

6. Ford didn't take the money.

[4lbs]

10. Ford took a $5.9 billion government loan subsidy last year.

http://www.mfrtech.com/articles/2223.html


That loan was to update it's factories to better produce fuel efficient and alternative energy cars. Cars that have sold very well the past six months to allow it to begin repaying it's debt.


That loan was part of the stimulus bill (ARRA) that nearly every Republican voted against.

[harkadog]

12. No, untrue.

1) the money Ford is paying back is not government money. It is private investment.

2) The loan you are talking about was not part of the stimulus bill. It was appropriated in 2008.

[FrenchieCat]

13. The money, where-ever it specifically came from, and

whatever it might specifically be called is being paid back,
and that's a good thing. period.


Just sayin'! :shrug:

[harkadog]

14. As the owner of a Ford F-150 I agree.

I think they are a fine company and I have always owned Fords.

[itsrobert]

15. But it was a private investment back by Government BAILOUTS

What do you think the banks were doing with the bailout money?

[harkadog]

16. This was an old loan not due until 2013.

What made you think it came from bank bailout money?