Ford revs up
Ford revs up production, market share
Posted Tuesday, Jun 2, 2009, 11:04 am in Employee News
Ford Motor Co. is boosting production for the second time this quarter—an action in sharp contrast to the factory shutdowns taking place at its bankrupt cross-town rivals, The Detroit News reported.
But General Motors Corp.’s bankruptcy filing, which will eliminate much of that company’s debt, also creates new challenges for the Dearborn, Mich., automaker, particularly with the financing of its vehicles, the News said.
Ford, which will announce today that it is increasing its North American plant output by another 10,000 vehicles, is gaining market share as customers shy away from GM and Chrysler LLC, and it stands to gain more as GM moves to eliminate or sell its Pontiac, Hummer, Saturn and Saab brands, the News said.
Ford has addressed some of its issues outside of bankruptcy court, the paper said. In March, the automaker renegotiated the terms of its UAW contract and convinced bondholders to forgive billions of dollars of debt for pennies on the dollar, the News reproted. But bankruptcy will allow GM and Chrysler to do more.
The Treasury Department has been slow to act on Ford’s application to allow Ford Credit to become an industrial bank, the paper said. That still would not give Ford access to federal money, but it would allow Ford Credit to secure financing at more favorable rates, the story said. (The Detroit News)
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