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Filed under: Ford, Earnings/Financials



Ford was the only one of Detroit's three automakers able to avoid taking a direct government bailout in 2009 to bypass bankruptcy. However, that doesn't mean it hasn't been able to benefit from some government largess.

Back in 2006 before the credit markets collapsed, Ford essentially mortgaged every facility it had in order to borrow $23.5 billion. That money was used to provide operating cash flow that General Motors and Chrysler didn't have when things went south in 2008. The money allowed Ford to keep the lights on, but it also saddled the company with the debt service payments of $318 per vehicle in the second quarter of this year.

Rather than direct bailouts, Ford has been able to take advantage of several government-backed low interest loan programs like the Advanced Technology Vehicle Manufacturing program run by the Department of Energy to fund new vehicle development and factory retooling. Ford is also getting tax breaks and low interest loans from various states as well as other countries like the UK and Russia. At the same time, it has used profits earned in the past year to pay down higher interest debt earlier than planned. In doing so, Ford hopes to get back from junk bond status to investment grade by late 2011 or early 2012.

[Source: Wall Street Journal]Report: Ford using government-backed loans to pay off debt originally appeared on Autoblog on Tue, 10 Aug 2010 10:31:00 EST. Please see our terms for use of feeds.



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Mercury C557
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Im calling BS on this one, sounds like someone made it up since theres no way to prove it.
didn't have time to try to read the original WSJ article but I don't see anything BS-ish here
or even anything we haven't already heard about
it'd be silly if FoMoCo didn't take advantage of any gov'mint programs to try to equal the score with GM & Chryco
 

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I for one are glad the Fed’s are supporting Ford too, we do not want them to be walked over by the foreign competition.
didn't have time to try to read the original WSJ article but I don't see anything BS-ish here
or even anything we haven't already heard about
it'd be silly if FoMoCo didn't take advantage of any gov'mint programs to try to equal the score with GM & Chryco
 

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Mercury C557
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I was of the understanding that this program was offered to all manufacturers who assembled in the U.S.
I seem to remember that GM & Chrysler didn't qualify for the
"Advanced Technology Vehicle Manufacturing program run by the Department of Energy to fund new vehicle development and factory retooling"
'course I could be thinking of something that only sounded similar
 

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The Spaminator
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I seem to remember that GM & Chrysler didn't qualify for the
"Advanced Technology Vehicle Manufacturing program run by the Department of Energy to fund new vehicle development and factory retooling"
'course I could be thinking of something that only sounded similar
Your right, they couldnt.

To apply for the loans, a company had to prove that they were financially secure. Nissan got a loan as well.
 

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That is why I have no respect for congress.
I was of the understanding that this program was offered to all manufacturers who assembled in the U.S.
See this

Washington -- A group of 40 members of Congress called on the Japanese government to ease the rules of its version of "Cash for Clunkers" to make it easier for U.S. vehicles to take part.
But the effort may be too late.
Masayuki Naoshima, the Japanese minister for Economy, Trade and Industry, said late last month that the government would end the 18-month-old program on Sept. 30, citing budget woes.


From The Detroit News: http://detnews.com/article/20100810/AUTO01/8100406/1148/rss25#ixzz0wF6ZggZc
 
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