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.
More by Edward Niedermeyer
Comments
Join the conversation
And here I thought the Flex was Ford's savior.
@ P71_CrownVic: Now, that's just mean...
Less cash than they thought? Ford has only just added up the cost of all those incentives during December.
"My cat's breath smells like catfood"