Ford said it would offer holders of its Motor Company Capital Trust II preferred securities stock or cash by 15 March, reducing debt by about US$3bn.

The company said the move would lower annual interest costs by about $190m but would book a 2011 first quarter charge of up to $60m.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

“We remain focused on reducing our automotive debt as the core automotive business continues to strengthen,” said CFO Lewis Booth. “We are pleased with the progress we have made, and we are committed to continuing to improve our balance sheet to lay a solid foundation for a strong and profitably growing business in years to come.”

Ford reduced debt by $14.5bn in 2010.

The automaker borrowed around $23bn in late 2006 as then-new CEO Alan Mulally began a restructuring plan. Unlike, Detroit rivals GM and Chrysler, it did not seek federal bailout funding after the 2008 credit crunch.

Just Auto Excellence Awards - Nominations Closed

Nominations are now closed for the Just Auto Technology Excellence Awards. A big thanks to all the organisations that entered – your response has been outstanding, showcasing exceptional innovation, leadership, and impact.

Excellence in Action
Continental has secured the Window Displays Innovation Award in the 2025 Just Auto Excellence Awards for its Window Projection solution, transforming side windows into dynamic, data-rich canvases. Discover how this compact projection technology and intelligent software are reshaping in-car UX and opening fresh revenue streams for OEMs and mobility providers.

Discover the Impact