November 15, 2002
Ford’s pension funds lose 11.5%
Dearborn, Michigan – Ford Motor Company announced that Ford’s pension fund, like those of many other companies, has been adversely affected by recent declines in equity markets.
Based on an estimated U.S. pension fund investment loss of 11.5 percent through Oct. 31, Ford’s U.S. pension plans are projected to be underfunded in aggregate by about $6.2 billion at the end of 2002 on an accounting basis.
The company said that it has ample liquidity, including $25.7 billion in cash as of Sept. 30, 2002, to meet projected contributions, and overall, the company believes its pension obligations are very manageable.
“Ford’s pension plans have experienced investment volatility before; it is important to maintain a disciplined long-term approach and not to overreact to recent declines,” said a news release.