Ford Motor Co. said it will pay about $3.8 billion in cash to a union health-care fund today, a sign the automaker is confident that Chief Executive Officer Alan Mulallyâs plan will generate cash for the company. Ford was required to pay $859 million to the United Auto Workers Retiree Medical Benefits Trust by June 30 to fund benefits for former hourly workers. Ford had the option to pay as much as $610 million in stock under an agreement reached with the union last year. Ford defied the expectations of analysts who had said the automaker would pay a portion of its obligation in stock because the second-largest U.S. automakerâs shares have been trading down since closing at a 52-week high of $14.46 on April 26. The chief of Fordâs Americas unit also warned analysts the U.S. auto market had âflat-linedâ since last yearâs third quarter as consumers avoided making big purchases. âOur One Ford plan to profitably grow our business is working, and we are increasingly confident about our future,â Mulally said in a statement. âWe expect to continue to improve our balance sheet as we deliver on our plan.â Ford said it will pay $3.8 billion in cash to the UAW trust, dropping its balance owed to the fund to $3.6 billion. The Dearborn, Michigan-based automaker said it is also paying $255 million in deferred dividend payments to another trust held by other investors. Added with other debt payments made in the second quarter, Ford said it has reduced debt by $7 billion in the quarter, reducing annual interest payments by $470 million. At the end of the first quarter, Ford had $34 billion in debt. This should reduce Fordâs debt to as low as $27 billion. http://noir.bloomberg.com/apps/news?pid=20601087&sid=acV.4jyjw_dc&pos=5 Buy
I was watching this story yesterday, how they are trying to brighten up the Lincoln dealerships and start putting money into the brand since its pretty much at the bottom of the luxury car list. Trying to change Lincoln into a world-class luxury brand, ha, not happening anytime soon Ford. This brand isnt at the bottom and will probably stay there for decades, no wants to buy a Lincoln, at one time it was a brand that held something of a status symbol, today no one wants a lincoln mkz for $40,000, people are buying Acura, Infiniti, Bmw and mercedes, you dont see many young adults buying lincoln , they are all buying TLs, G35, 335I and C300s. Keep trying ford!!!
I remember when a Ford line worker couldn't afford a Lincoln. Now that they can afford to buy one, they don't.
Apparently these line workers are not stupid. I have two friends that have owned ford built Jaguars. One is not so bright and he has owned two. All three of those Jags had to have the engines replaced well under 100K miles. I think that's essentially the same engine Ford put into Lincolns. There is a reason why people buy Japanese or German cars.
I had an uncle who worked on a Ford line for many years. His favorite joke: Q: What time is it when a Ford passes a Ford? A: Tin pass tin. Disclaimer: Long Ford