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
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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
