Bailout Watch 328: Ford Tastes Like Burning; CEO Rescinds $15b Cash Claim

Edward Niedermeyer
by Edward Niedermeyer
bailout watch 328 ford tastes like burning ceo rescinds 15b cash claim

Automotive News [sub] reports that Ford has less than $15b in cash, and a burn rate of “somewhere between $1.3 billion and $2.57 billion” in the fourth quarter. CEO Alan Mulally had earlier indicated that Ford had a solid $15b to work with, but a spokesman now reveals that his number is off. Ford has not closed the books on the fourth quarter yet, says Mark Truby, “however, our cash position will be lower than $15 billion. It would be premature to say anything more.” Ford is sticking by its earlier guidance that cash burn was reduced in the fourth quarter, but that’s not saying much considering the Blue Oval torched $7.7b in the third. In addition to the “under $15b” cash on hand, Ford has access to $10.7b in credit. But with nothing else to borrow against, survival until the brand’s Euro-revival takes hold could come down to a requested-but-unapproved $9b government “emergency line of credit.” Or magic. Never stop believing in magic.

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