http://www.motorauthority.com/ford-slashes-debt-by-99-billion-with-cash-and-equity-deal.html
Just as other Detroit carmakers are clamoring for more federal loans, Ford has managed to reduce its debt by almost $10 billion. The news resulted in the stock price of Ford spiking by over 15% - a rare occurrence for U.S. carmakers considering the state of the market.

Ford's debt reduction amounted to $9.9 billion, a figure that was slightly less than a predicted $10.4 billion saving. Nevertheless, the Blue Oval described its debt reduction efforts as successful, claiming that the move will now allow the company to take "another step toward creating an exciting, viable enterprise".

Ford and its subsidiaries used a total of $2.44 billion in reducing the debt, around $200 million more than was originally anticipated. By convincing debt holders to take Ford equity in lieu of cash repayments, Ford's total debt has been decreased by over one-third. Additionally, its interest expenses have also been massively reduced, saving Ford around half-a-billion dollars every year.

Despite the rise in stock price and the reduction of debt, Ford is still expected to make "sizable losses" this year, reports Automotive News. Times may become especially tough at Ford if suppliers are forced to shut due to trouble at GM and Chrysler, and if this is the case then Ford may have to turn to the government for loans as well.

Ford's success in swapping its debt for stock has been an easier proposition for the Blue Oval when compared to companies such as Chrysler and GM. Ford's equity remains relatively steady, and its operations are in much better shape than its Detroit siblings, giving debt holders much greater confidence to swap their debt for equity in the future as well.
cliffs
-ford slashes debt by $9.9 billion

Good. I hope the US automakers learn from this and turn themselves around. Although I personally wouldn't buy a vehicle from the Big Three unless it was a truck, Corvette, CTS-V, or possibly a Camaro or Mustang, I think it is important for our country to have a strong, domestic auto industry. I would love to see Cadillac return to dominance and be the target the BMW, Mercedes-Benz, Audi, and Lexus shoot for rather than them trying to convince people to buy a Caddy instead of one of the other luxury brands.

GM needs to get rid of some divisions or at least diversify them instead of just changing the name and some sheet metal. Give GMC all of the trucks and SUVs, let Chevy make all the economy cars, Pontiac the sporty and entry level luxury cars, and Cadillac the luxury cars. Axe Buick (except in markets where there is high demand like China) and Saturn.

Parked next to a new 2010 Fusion last night - nice looking car. Hopefully Ford will keep making good moves.

Give GMC all of the trucks and SUVs, let Chevy make all the economy cars, Pontiac the sporty and entry level luxury cars, and Cadillac the luxury cars. Axe Buick (except in markets where there is high demand like China) and Saturn.
They need to have only TWO brands, like everybody else (Chevrolet and Cadillac). Toyota/Lexus had 1,500 dealers at the beginning of '08; GM over 4,000, with basically the same vehicle sales. They'll have to go thru bankruptcy to get rid of thousands of dealers; no other way around it IMO.

As far as Ford, it needs to ditch Mercury right away, but I doubt Lincoln will ever be viewed as a true luxury brand; it's like Buick.

And as much as I wanted to like my Corvette, I much rather be in my Accord 6MT to be honest. Build quality is absolute crap, engine was ticking BADLY, roof was noisy as hell and wind leaks were never fixed, and a myriad of problems. I'm done with the 'small-three' myself. Take care.

They need to have only TWO brands, like everybody else (Chevrolet and Cadillac). Toyota/Lexus had 1,500 dealers at the beginning of '08; GM over 4,000, with basically the same vehicle sales. They'll have to go thru bankruptcy to get rid of thousands of dealers; no other way around it IMO.

As far as Ford, it needs to ditch Mercury right away, but I doubt Lincoln will ever be viewed as a true luxury brand; it's like Buick.

And as much as I wanted to like my Corvette, I much rather be in my Accord 6MT to be honest. Build quality is absolute crap, engine was ticking BADLY, roof was noisy as hell and wind leaks were never fixed, and a myriad of problems. I'm done with the 'small-three' myself. Take care.My thoughts exactly. If the Big 3 would reduce the number of brands they have and put more engineering/R&D hours into a vehicle, it could appease many people rather than having to take one basic car and divvy it up between 3 brands with different sheetmetal and sometimes different options...