Ford CEO: Ford Plans to Speed Up Repayment of Debt Worth $27B
DETROIT - Ford Motor Co. CEO Alan Mulally says the automaker plans to speed up debt repayment as its financial condition continues to improve, reported The Associated Press.
Mulally also told reporters at a briefing Friday on its new vehicles that Ford will keep its advantage over Chrysler and General Motors next year. Ford has gained sales and market share while its Detroit competitors were forced to take government aid and go through bankruptcy protection.
Ford has about $27 billion in debt. Mulally says the company repaid $10 billion this year and has sold $1.6 billion worth of stock. He says the automaker will accelerate payments as it continues to move toward profitability in 2011.
Ford mortgaged all of its assets three years ago to borrow $23.5 billion. The loans allowed it to avoid bankruptcy and the government aid that GM and Chrysler needed to survive.
"Everybody knows how fast we are getting back to profitability and free cash flow," Mulally said. "Then we'll just accelerate the improvements to the balance sheet."
In November, Ford reported a third-quarter profit of nearly $1 billion and said it would be solidly profitable in two years.
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