Dearborn, Michigan – The Ford Motor Company has announced a net loss of US$5.9 billion for the fourth quarter of 2008, and said that while it will draw $10.1 billion on its available credit lines, it does not need a bridge loan from the U.S. government.
The company is drawing on credit due to concerns about the instability of capital markets and the uncertain state of the economy, and will add the funds to the company cash for the first quarter of 2009. Ford reported total liquidity of $24 billion as of December 31, 2008, and said that based on current planning assumptions, this is sufficient to fund its business plan and product investments without government loans.
In its report, Ford also said that it had “decisively reduced” global dealer stocks by more than 50,000 vehicles when compared with the third quarter of 2008, and now has among the lowest days’ supply in the industry. Its product transformation has also helped it to gain market share in Europe for the fourth quarter and full year, and in the U.S. for the fourth quarter of 2008. The company said that it remains on track for both its overall and its North American automotive pre-tax results to be at or above breakeven in 2011.