Ford Motor Company has announced huge strides in its efforts to become economically viable. And whether through magic or some sort of wacky accounting that involves proper management of finances, it has done this without federal government aid (aka your tax dollars).
Today Ford announced that is has reduced its $25.9 billion debt by more than a third with a payment of $9.9 billion. The payment was made in 2.4 billion in cash as well as 468 million shares of Ford Common stock.
Reducing the company's debt so significantly puts FoMoCo in a much-improved financial situation moving forward. This one-time payment will reduce Ford's annual interest payments by $500 million.
"By substantially reducing our debt, Ford is taking another step toward creating an exciting, viable enterprise," said Ford President and CEO Alan Mulally. "As with our recent agreements with the UAW, Ford continues to lead the industry in taking the decisive actions necessary to weather the current downturn and deliver long-term profitable growth."
More: Ford Pays Down $9.9 Billion In Debt On Road To Economic Recovery