Like any auto show, the Frankfurt Motor Show was an opportunity for American automaker Ford to strut their stuff. And that's exactly what they did, both in terms of products (i.e., a new electric bicycle concept and Fiesta ST Concept) and financial performance.
Now, before you scoff and call Ford's finances dire, understand that over the past two years they've successfully paid off $19.6 billion of their debt. That's $9.8 billion per year and approximately $.81billion per month! And yes, that is something worth talking about. And, so Ford did.
"Earlier this week, we gave notice to our leaders and by the end of this week, we will have pre-paid the remaining amount of our term loan," said Lewis Booth, CFO, Ford to the interested crowd. "That's a further $1.8 billion of debt we will have paid off."1
Ford's goal, of course, is to pay off their debts as quickly as possible. In conjunction, they're also trying to create a new four-year deal with the UAW, which does not involve substantially increasing wages. The hope is, that when these two pieces fall into place, Ford's debt-rating will be upgraded to investment status.
For Ford, this means more free cash to invest in research and development. For consumers, this means, new and improved models.
Interested in more Ford news - from financial updates to availability of new safety and/or eco-friendly technologies? Stay tuned. Bickford Ford, located at 3100 Bickford Avenue Snohomish, WA 98290, is here to keep you informed. And remember, you can always stay up to date on all of the newness Ford is brining to its lineup online by visiting our new Ford showroom.