Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Ford announces it has successfully reduced debt by $9.9 billion]]>http://www.autoblog.com/2009/04/06/ford-announces-it-has-successfully-reduced-debt-by-9-9-billion/http://www.autoblog.com/2009/04/06/ford-announces-it-has-successfully-reduced-debt-by-9-9-billion/http://www.autoblog.com/2009/04/06/ford-announces-it-has-successfully-reduced-debt-by-9-9-billion/#commentsFiled under: ,



The Ford Motor Company has announced that it has completed more of its financial restructuring initiatives, lessening its debt by some $9.9 billion (from a starting place of $25.8 billion at the end of last year). The company says this move will lower its annual interest costs by more than $500 million. Ford and its financing arm, Ford Credit, are using 468 million shares of stock and $2.4 billion in cash to reach that figure.

Other parts of the company's debt restructuring efforts include the tendering of approximately $4.3 billion in Senior Convertible Notes (not due until December 15, 2036) for purchase related to Ford's conversion offer, along with previously announced gains like its revised agreements with the United Auto Workers and a cash tender offer for the company's unsecured, non-convertible debt securities. For the full gorey financial details, you number crunchers can click on the jump to check out Ford's official press releases.

[Source: Ford Motor Company | Image: Spencer Platt/Getty]

Continue reading Ford announces it has successfully reduced debt by $9.9 billion

Ford announces it has successfully reduced debt by $9.9 billion originally appeared on Autoblog on Mon, 06 Apr 2009 10:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>debt restructuringDebtRestructuringFord CreditFord Motor companyFord Motor CreditFordCreditFordMotorCompanyFordMotorCreditrestructuringsenior convertible notesSeniorConvertibleNotesUAWUnited Auto WorkersUnitedAutoWorkersMon, 06 Apr 2009 10:29:00 EST<![CDATA[Does Washington's GMAC bailout hurt Ford?]]>http://www.autoblog.com/2009/01/04/does-washingtons-gmac-bailout-hurt-ford/http://www.autoblog.com/2009/01/04/does-washingtons-gmac-bailout-hurt-ford/http://www.autoblog.com/2009/01/04/does-washingtons-gmac-bailout-hurt-ford/#commentsFiled under: , ,

The Wall Street Journal puts forth the case that the government's $5 billion lifeline to GMAC has given GMAC a competitive advantage compared to its rivals. After the taxpayer cash was received, GMAC dropped the required credit score to get a loan and began offering 0% financing on several models, and rates from about 1% to 6% on a host of others. While doing so, it admitted that "without this [loan] . . . we would not be able to do this today."

The Journal cries foul, saying that because GMAC is essentially doing this with -- or at least, because of -- government money, "the feds have now put the muscle of the state behind one company's products." The Journal also considers that the government might do what it can to make sure the horses it bet on win the race, saying "the Washington temptation will be to take other steps to help the two companies gain market share at the expense of their private competitors."

As to the issue of granting the loan to GMAC at all, the government didn't have much choice unless it wanted its previous investment in GM to potentially get flushed by a GMAC bankruptcy. As to 0% fiancing, it's being offered on SUVs and Saabs, none of which are making the cash register overheat. A quick comparison between financing in Southern California through GMAC or Ford Credit found similar rates on other cars: the 2009 Malibu gets 4.9% APR, the same as the 2009 Ford Taurus SEL AWD.

Will the government try to otherwise help GM and Chrysler (beyond pushing more money their way)? The airlines got $15 billion after 9/11, yet would anyone accuse the government of otherwise aiding the industry? As to intervention in the free market... well, when was the last time the market was truly free? And Does GMAC's ability to offer the new incentives give it a competitive advantage over the other companies? It only lasted until January 5th, and some GM dealers did say they were moving metal -- but if the benefit really was that lopsided, we're sure those competitors will let us know about it soon enough.

[Source: Wall Street Journal]

Continue reading Does Washington's GMAC bailout hurt Ford?

Does Washington's GMAC bailout hurt Ford? originally appeared on Autoblog on Sun, 04 Jan 2009 19:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>auto industry bailoutAutoIndustryBailoutbank bailoutBankBailoutcar buyingCarBuyingfinancialfinancialsfinancingford creditFordCreditgmacgmac loanGmacLoangovernmentwall street journalWallStreetJournalSun, 04 Jan 2009 19:32:00 EST<![CDATA[Ford, Toyota adopt Netflix technology for bill paying]]>http://www.autoblog.com/2008/09/02/ford-toyota-adopt-netflix-technology-for-bill-paying/http://www.autoblog.com/2008/09/02/ford-toyota-adopt-netflix-technology-for-bill-paying/http://www.autoblog.com/2008/09/02/ford-toyota-adopt-netflix-technology-for-bill-paying/#commentsFiled under: , ,



The long-time comeback for inquiring creditors has always been the once fail-safe "The check is in the mail." That oldie but goodie won't work anymore if you've purchased a new vehicle from Ford or Toyota's credit arm. The two automakers have adopted bar code scan technology that tells each company whether or not your check actually is in the mail. The same technology is used by Netflix to determine when a subscriber has sent back a DVD, which enables the cloud-based DVD rental service to send that customer another DVD before the first actually arrives back.

Though the bar code scan technology can be a hassle for people trying to get credit companies off their backs, it actually helps them, as well. If a payment was lost in the mail or some unforeseen natural disaster like a hurricane puts your check under five feet of water, the credit companies will know and you won't have to pay a late fee. Also, if your check really is in the mail then they won't bother with the annoying phone call all together, as they'll already know it's headed their way.

[Source: Automotive News - sub. req'd, photo by billaday | CC2.0]

Ford, Toyota adopt Netflix technology for bill paying originally appeared on Autoblog on Tue, 02 Sep 2008 12:32:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>credit armCreditArmFordford creditFordCreditnetflixtoyotatoyota creditToyotaCreditTue, 02 Sep 2008 12:32:00 EST<![CDATA[Ford to sell $500m in new stock]]>http://www.autoblog.com/2008/08/15/ford-to-sell-500m-in-new-stock/http://www.autoblog.com/2008/08/15/ford-to-sell-500m-in-new-stock/http://www.autoblog.com/2008/08/15/ford-to-sell-500m-in-new-stock/#commentsFiled under: ,

In an effort to secure more capital and reduce debt, Ford plans to sell $500m in new stock. Ford will use the cash infusion to buy bonds from Ford Motor Credit, which has been struggling with the slow economy and nation-wide credit crunch. Goldman Sachs is handling the stock sale, and Ford has given no timetable for when the stocks will enter the market. Ford has already exchanged debt for equity to the tune of $927m in the past year. With shares of Ford stock at under $5 per share right now, anybody can own a share of the Blue Oval for the price of a value meal.

[Source: Automotive News (subs req'd)]

Ford to sell $500m in new stock originally appeared on Autoblog on Fri, 15 Aug 2008 14:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ford creditford stockFordCreditFordStockstock saleStockSaleFri, 15 Aug 2008 14:01:00 EST<![CDATA[More leasing woes: Ford Credit takes big hit on trucks and SUVs]]>http://www.autoblog.com/2008/07/28/more-leasing-woes-ford-credit-takes-a-hit-on-trucks/http://www.autoblog.com/2008/07/28/more-leasing-woes-ford-credit-takes-a-hit-on-trucks/http://www.autoblog.com/2008/07/28/more-leasing-woes-ford-credit-takes-a-hit-on-trucks/#commentsFiled under: , , , ,



Fresh off the news that Chrysler financial will no longer play the leasing game comes word that Ford took a $2.1B charge in the second quarter to offset expected losses from truck and SUV leases. High gas prices have put a huge dent in the truck and SUV market, so when customers turn in their vehicles, their residual value is lower than originally thought and Ford Credit ends up paying the difference. The trucks are fetching less at auction and on dealership used car lots, leaving thousands of dollars that need to be paid by Ford Credit. Ford is also faced with spending more on incentives to subsidize the monthly payments for its truck fleet. Ford's credit arm lost $1.4B in the second quarter, as repossessions and loan defaults also rose due to poor economic conditions. Despite Ford Credit's struggles, the Blue Oval has not said it will discontinue offering leases, which make up 20% of Ford's overall sales, though we've heard some very unsubstantiated rumors that an announcement similar to Chrysler's may come tomorrow.

[Source: Automotive News - subs. req'd, Photo by Bill Pugliano/Getty]

More leasing woes: Ford Credit takes big hit on trucks and SUVs originally appeared on Autoblog on Mon, 28 Jul 2008 16:21:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Ford CreditFordCreditleasingquarterly financialsQuarterlyFinancialsMon, 28 Jul 2008 16:21:00 EST<![CDATA[Rubin's resignation hints at sale of Ford Credit]]>http://www.autoblog.com/2006/08/28/rubins-resignation-hints-at-sale-of-ford-credit/http://www.autoblog.com/2006/08/28/rubins-resignation-hints-at-sale-of-ford-credit/http://www.autoblog.com/2006/08/28/rubins-resignation-hints-at-sale-of-ford-credit/#commentsFiled under: ,

Ford Motor may be taking a page from General Motors' restructuring playbook in considering ot sell off part of its Ford Credit financial unit. Both companies have seen the cost of capital for their financial subsidiaries rising as the automakers' credit status falls ever further into junk status.

The resignation Friday of key Ford director Robert E. Rubin was the result of Rubin's position as a board member and chairman of the executive committee at Citigroup, which Rubin feared could raise the possibility of conflict of interest. Since this hasn't been an issue up to now, the move sparked speculation that Ford Credit was in play, particularly in view of Citigroup's recent expansion of its automotive financing portfolio and its role in GM's pending sale of a majority stake in its GMAC credit arm.

Rubin is the third director to leave Ford's board this year. He joined Ford's board in 2000, after serving as Secretary of the Treasury in the Clinton administration. Rubin is a 26-year veteran of Goldman Sachs & Co.

[Source: The Detroit News]

Rubin's resignation hints at sale of Ford Credit originally appeared on Autoblog on Mon, 28 Aug 2006 14:27:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ford boardford board of directorsford bodford creditford restructuringFordBoardOfDirectorsgmacrobert e rubinrobert rubinRobertRubinMon, 28 Aug 2006 14:27:00 EST