A largely unreported fact amidst the madness of Chrysler and General Motors, is the many steps Ford has taken to stay out of government bailouts and to show their strength. Yesterday, Ford actually paid down its debt rather than looking for a bailout to accrue more of it.
Ford used $2.4 billion in cash and 468 million shares of its common stock to buy down $9.9 billion in debt, reducing its leverage by 38 percent.One can't help wondering if soon the "Big Three" automakers will be reduced to the "Big One." Hopefully, the president will do as much to reward Ford for doing the RIGHT things, as he has done to punish GM for doing the WRONG things.
"By substantially reducing our debt, Ford is taking another step toward creating an exciting, viable enterprise," Ford chief executive Alan Mulally said in a statement.
3 comments:
I agree that Ford should be credited for doing the right thing and trying to get on a solid footing financially. Their product line-up seems better than anything Chrysler is producing and most of the GM line. So it seems like they are doing a lot of right things.
Hopefully the president will reward Ford rather than going, "ooh, someone with money to take from to pay for my plan."
Yeah, right now the POTUS seems to be punishing GM for doing the wrong thing, and punishing those who do the right thing even more.
Or am I just cynical?
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