Ford’s board has halved the third quarter dividend to five cents a share compared with Q2.
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The board also voluntarily halved its own fees.
“Our directors are well aware of the difficulties and sacrifices involved in turning around our company,” said chairman and chief executive officer Bill Ford. “They have underscored this by voting to reduce their own compensation.
“The directors also agreed that a reduction in the dividend is consistent with a broad range of actions we are taking across the company to support and improve the performance of our automotive operations,” he added.
“Strong liquidity is an important enabler of our on-going turnaround efforts and this action will make an important contribution.”
But Standard & Poor’s credit analyst Robert Schulz told Reuters: “While the dividend reduction will save about $US375m, the cash savings are relatively marginal.”
