For most automakers the Frankfurt Motor Show was a chance to showcase new cars and concept designes. Ford, of course, debuted new models and concept cars, but they also talked about their finances.

Ford took some of their time at the show to explain that they will soon be paying off a $1.8 billion loan. The importance of the announcement is that Ford will be paying off this huge loan ahead of schedule. Lewis Booth, CFO of Ford said, "Earlier this week, we gave notice to our leaders and by the end of this week, we will have pre-paid the remaining amount of our term loan."¹

With all the economic turmoil in the world today, maybe Ford thought it prudent to explain their solid financial footing to customers and stakeholders. Like other big companies, Ford owes other debts, but all signs point to a full payoff.

Another announcement is that Ford is preparing to negotiate a new contract with the UAW that gives union workers sustained wages over a four year period. This is a move, not only to sign a deal with workers, but to increase Ford's debt rating to investment grade.

Having an investment grade debt rating will allow Ford to borrow money for less and pump more of those savings into product development which will ultimately affect consumers in a positive way. Here at Chuck Stevens Ford, we're happy Ford took the time at the auto show to reinforce their financial position and let all of us know that they are in full control. It can only mean good things for Ford fans!

Interested in more Ford news? Stay tuned. Chuck Stevens Ford, located at 1304 HWY 31 South, Bay Minette, AL 36507, is dedicated to keeping you informed. And remember, you can explore all of the newness Ford is brining to its 2012 model lineup online at our new Ford showroom.

Source: ¹http://www.freep.com/article/20110914/BUSINESS0102/110914019/1014/BUSINESS01