Ford says does it not need short-term loans from bailout
DETROIT, Michigan (AFP) – Ford Motor Co. said Friday it would not need a short-term loan from the government, but lauded the Bush administration's decision to extend aid to its cash-strapped competitors and renewed a request for a nine billion dollar line of credit.
"We do not face a near-term liquidity issue, and we are not seeking short-term financial assistance from the government," Ford president and chief executive officer Alan Mulally said in a statement.
Ford said it hoped to restructure its business without government assistance but requested the nine billion dollar line of credit as a "critical backstop or safeguard against worsening conditions."
The US government announced earlier Friday it would provide ailing automakers with 13.4 billion dollars in short-term financing in support of their restructuring, setting strict conditions to prove their viability.
"All of us at Ford appreciate the prudent step the administration has taken to address the near-term liquidity issues of GM and Chrysler," Mulally said.
"The US auto industry is highly interdependent, and a failure of one of our competitors would have a ripple effect that could jeopardize millions of jobs and further damage the already weakened US economy."
Ford said that while it is working to aggressively reduce costs it will continue to invest heavily in product development, including approximately 14 billion dollars over the next seven years to improve the fuel economy of its vehicles.
Ford said the comprehensive restructuring plan it presented to Congress will allow it to return to profitability by 2011
"While we clearly still have much more work to do, I am more convinced than ever that we have the right plan that will create a viable Ford going forward and position us for profitable growth," Mulally said
ORIGINAL: Axel
Here's the latest for anyone who hasn't seen. Seems very temporary if Chrysler needs $7.5 billion to run the company.
WASHINGTON (AP) - The Bush administration came to the rescue of the deeply troubled U.S. auto industry Friday, offering $17.4 billion in loans in exchange for concessions from carmakers and their workers.
"Allowing the auto companies to collapse is not a responsible course of action," President Bush said. Bankruptcy, He said that a bankruptcy was unlikely to work for the auto industry at this time and would deal "an unacceptably painful blow to hardworking Americans" across the economy.
One official said $13.4 billion of the money would be available this month and next, $9.4 billion for General Motors Corp. and $4 billion for Chrysler LLC. Both companies have said they soon might be unable to pay their bills without federal help. Ford Motor Co. has said it does not need immediate help.
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