Ford just posted huge profits -- from Bloomberg:
Ford Raising $3.3 Billion, Paying Down Credit LineAnd why does Ford seem to ring a bell -- oh yeah:
Ford Motor Co., after posting a surprise third-quarter net profit, said it is raising as much as $3.3 billion, while paying down and pushing back the maturity of a $10.7 billion line of credit to strengthen its balance sheet.
Ford said it is seeking to pay down 25 percent of the revolver and move back by two years, to 2013, the maturity of the remaining $8 billion liability. Ford also said it is offering as much as $2.3 billion in senior notes that can be converted to common stock or cash in 2016.
Ford also in December will offer as much as $1 billion in common shares through broker-dealers.
�We expect the moves will enhance Ford�s automotive liquidity and over time reduce the company�s debt burden, providing an additional cushion given the still uncertain state of the economy,� Ford Chief Executive Officer Alan Mulally said in a statement. Earlier in the day, it announced a surprise $997 million third-quarter profit.
Ford, the only major U.S. automaker to avoid bankruptcy, is seeking to reduce a debt load larger than those of General Motors Co. and Chrysler Group LLC, which shed liabilities in reorganization. GM�s liabilities will be $22.3 billion in 2011, while Ford�s will total $38.1 billion, Barclays Capital auto analyst Brian Johnson said in an Oct. 20 research note.They were the only US carmaker to refuse government bail-out. Instead, although they had a debt bigger than GM and Chrysler, they were able to recover and come out ahead. Now they are building a cushion to further protect themselves from any financial downturns. Sounds like they have an excellent President and a great product. I had some bad experiences with Ford products back in the 1980's so have avoided them since but I think it is time to give them another look... and it is the only US car builder that was not bailed out by the Federal Government.
Hi Scott
From Wikipedia:
http://en.wikipedia.org/wiki/Saturn_Corporation
Saturn LLC is a subsidiary of General Motors Company, established on January 7, 1985, in response to the success of Japanese small-car imports in the United States. As a "different kind of car company," Saturn operated outside the GM superstructure for a time, with its own assembly plant in Spring Hill, Tennessee, unique models, and a separate retailer network.
Following the withdrawal of a bid by Penske Automotive to acquire Saturn in September 2009, the Motors Liquidation Company of General Motors announced that it expected to shut down Saturn by October 2010. All new production has been halted as of October 1st, 2009.
I thought Saturn was also a US auto maker that hadn't been bailed out. Could be wrong, though. When I thought about this with Saturn, it made me want to swing by one of their dealerships and take a test drive.