Automotive: Ford gets $18 billion credit card

Manufacturing News, Source : The Manufacturer US
Published : 28 Nov 2006 17:15

This just in - Ford has obtained an $18 billion in cash loans and revolving credit, which it will use in its ambitious restructuring plan.

As the Wall Street Journal puts it, "Ford Motor essentially bet the company's future on its turnaround plan by mortgaging nearly all of Ford's domestic assets," which it offers as collateral. This includes its plants, office buildings, patents and trademarks, and stakes in Ford Credit and Volvo.

Ford has lost roughly $7 billion this calendar year, but expects to have $38 billion in liquidity by December 31.

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