Ford has recently admitted that it may not be able to pay the dividend of debts as it reached $29.9 billion or £14.5 billion. This announcement was made after the automaker has filed with the Securities and Exchange Commission. The automaker was also prevented from issuing dividends to shareholders in accordance to conditions attached to loans it had availed of.
Ford the producer of Volvo alternator is currently in the process of evaluating options for its Jaguar and Land Rover, the automakers two famous British marques in order to raise some funds.
According to the filing as quoted by The Sunday Times, "Ford's senior secured credit facility contains a covenant restricting Ford from paying dividends (other than dividends payable solely in stock . . . as a result, it is unlikely that Ford will pay any dividends of the Ford common stock in the foreseeable future."
Ford's stock market value as of last week was $15.4 billion and last year Ford lost $12.7 billion equivalent to nearly $7 per Ford share.
Despite Ford's good fortunes in Europe boost by the introduction of models such as the Mondeo, sadly it has struggled in its home market just like its Detroit rivals which have also suffered much due to liabilities brought by payments for pension and healthcare of workers not to mention the huge slice that its foreign competition is taking from domestic automakers.
To regain financial health Ford has developed a revival plan led by the former head of Boeing's commercial aircraft division, Alan Mulally who was promoted as chief executive of Ford last September 2006. He has started selling parts of the Ford empire as part of the expansion plan he is implementing. The first to go this year is the luxury sports-car maker, Aston Martin.
Ford has also received various offers for both Jaguar and Land Rover last week but it has not yet decided which buyer or buyers to award its two British marques probably because they have not yet gotten the offer that they want. And last week, The Sunday Times has reported that Ford is also considering the selling of its Swedish-based unit but Ford denies such speculations.
According to Ford spokesman Tom Hoyt, "To my knowledge, we are not in negotiations with anyone about the future of Volvo."
Mark Field, Ford's President of the Americas has also told Free Press in an interview, "Volvo is pretty integrated into Ford right now." Fields is currently heading the North American turnaround plan. He was also the previous head of Ford's premier Automotive Group in which Jaguar, Land Rover, and Volvo are included.
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Shane Morgay is a 34-year-old native of Ohio. She love cars and knows detailed information about them. She has a collection of miniature car collectibles and would love to have these collectibles become real ones. She works for a car part supplier most days of the week.
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