Sunday, January 25, 2009

Ford CEO: 'No more money' needed




By: Evan Lustig

1/25/09

The majority of US industries have needed significant help in order to remain in business. The one industry that has faced a large amount of turmoil is the Automobile industry. With consumers being unable to afford new cars American automobile manufacturers have needed billions of dollars from the government bailouts so they don’t have to file for bankruptcy or cause many Americans to lose their jobs. However, Ford Motor Co told the government that they don’t need any more money from this round of bailouts unlike GM and Chrysler who desperately need the money. Ford was able to steer clear of trouble by securing a $23 billion dollar loan in 2006 using most of its assets as security even its blue logo. Chief executive Alan Mulally said, “We don't want to borrow any more money. We have sufficient liquidity to fund our transformation plan, which means our business is in a relatively good shape." With President Obama’s stimulus plan hopefully being passed early in the year the chief executive believes that sales will rebound by the middle of 2009 bringing hope back to the auto industry. Industry wide auto sales fell by 36% in December and the January sales matched the December numbers. With an industry in dramatic decline and its competitors barely able to remain in business Ford looks to be the only automaker that has figured out how to handle the current economic recession effectively.

For more info:

http://money.cnn.com/2009/01/25/autos/ford_no_more_money.reut/index.htm?postversion=2009012511

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