Tuesday, April 7, 2009

Ford Announces that it has Reduced Debt by $9.9 Billion

Ford Announces that it has Reduced Debt by $9.9 Billion

It's not so often that we hear any good news from Detroit's Big 3 these days so Ford Motor Company's announcement that it has trimmed its automotive debt by 38 percent, or $9.9 billion, was a welcome surprise. The American automaker said that the debt reduction that was achieved through "completion of debt restructuring initiatives" will lower its annual cash interest expense by more than $500 million based on current interest rates.

By substantially reducing our debt, Ford is taking another step toward creating an exciting, viable enterprise," said Ford President and CEO Alan Mulally. "As with our recent agreements with the UAW, Ford continues to lead the industry in taking the decisive actions necessary to weather the current downturn and deliver long-term profitable growth."

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