Improving the balance sheet has been a continuous priority for Ford.
Ford’s plan was not simply a reaction to the current credit crisis, but rather a long-term objective that began several years ago, and has already delivered promising results. Here is a look at our ongoing efforts:
In December 2006, Ford raised $23.5 billion in liquidity, consisting of $18.5 billion of senior secured debt and credit facilities, and $5 billion of convertible debt. During the same year, Ford eliminated common stock dividends. In 2007 and 2008, we issued more than $5 billion in new equity.
Aston Martin, Jaguar, Land Rover and the majority of our investment in Mazda were sold.
In light of the frozen capital markets, Ford has embarked on aggressive plans to develop new funding products, filed an Industrial Loan Company application with the FDIC earlier this year and we are hopeful that a favorable response will soon be forthcoming.
To read the section on financing the plan and improving the balance sheet, click here.
