Ford said it would pay off this week the $1.8bn outstanding on its 2006 loan, due in 2013.

“Earlier this week we gave notice to our lenders and by the end of this week we will have pre-paid the remaining amount of our term loan,” said CFO Lewis Booth in Frankfurt. “That’s a further $1.8 billion of debt we will have paid off.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Ford reduced its debt from $33.6bn in 2009 to $14bn by June 2011.

Its primary aim over the next four years is to regain investment grade status which it lost after borrowing over $23bn in 2006. The carmaker wants to ink a new deal with the UAW that does not include ‘significant’ wage hikes.

The investment grade status would reduce Ford’s cost of borrowing and provide extra cash for vehicle development.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Just Auto Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Auto Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now