Ford has successful reduced its debt, saving the ailing automaker $500 million annually. The savings were achieved through a variety of debt restructuring initiatives that Ford introduced last month. With the news, shares of Ford improved on Wall Street, adding much needed positive news.
Despite the improvement in the automaker’s finances, Ford still faces challenges regarding liquidity. Meanwhile, Ford still hopes to save money with help from the United Auto Workers. The union has already approved concessions to help the automaker, including the suspension of bonuses. Regardless, Richmond Lincoln recognize that executives are being extremely proactive when it comes to restructuring and product development, especially when compared to other Detroit automakers.
With the savings that the automaker has successfully attained, Ford is still unfortunately not out of the woods warns Carsmart Used Cars. Auto sales have remained down and Ford still faces economic hardships. While Chrysler and GM may have already received federal aid, Ford has declined that option, leaving no opportunity for additional funds.
The recovery in auto sales is expected to be the determining factor for Ford’s long term success. The automaker has suffered from lackluster products, but Pittsburgh Lincoln dealers expect change is ahead thanks to exciting new products heading to Ford Linoln Mercury showrooms, including the 2010 Ford Mustang and soon the 2011 Ford Fiesta, Ford may have some much needed hits to help weather the economic downturn.
* * *
Ford news and Ford car reviews at Ford in the News.