Share issue reaffirms Ford's position of strength over 'Big Three'
12 May 2009

Ford has announced plans to raise $2 billion (£1.3 billion) by selling shares.

The move reaffirms Ford's position of strength as the only one of the US's 'Big Three' car makers that hasn’t received any money from the American tax payer.

Chrysler is currently in Chapter 11 bankruptcy protection while it restructures and it is widely expected that GM will follow suit.

Ford has reportedly benefitted from an upturn in sales in the US as a result of not taking US government money, as consumers have more confidence in the brand.

The $2 billion that Ford will raise from issuing up to 345 million common shares will enable it to pay in cash for a sizeable chunk of it’s contributions to a union-managed healthcare trust that would have otherwise been made in shares.

Ford shares have quadrupled in value since February's low.

Alan Mulally, Ford’s chief executive, described this share issue as, ‘An other example of the fast, decisive action we are taking as we build momentum on our plan, including further progress on improving our balance sheet’.

Find an Autocar car review

Driven this week

Edward Thomas

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week