Ford Motor Credit planning $19 billion-$24 billion of funding in 2011

By Jennifer Lanning Drey

Savannah, Ga., Feb. 28 - Ford Motor Co.'s financial services unit, Ford Motor Credit Co., expects to complete between $19 billion and $24 billion of funding in 2011, of which $6 billion to $8 billion will be unsecured, Mike Seneski, Ford Motor Credit's chief financial officer, said Monday.

"We feel very confident about the way our funding plan is unfolding," Seneski said during a presentation at the JPMorgan Global High Yield & Leveraged Conference in Miami.

Ford Motor Credit completed $25 billion of funding in 2010.

Also during Monday's presentation, Ford treasurer Neil Schloss noted that continuing to improve the balance sheet remains a priority for Ford, which reduced debt by $14.5 billion in 2010.

The company is looking to accelerate its plan to achieve investment-grade ratings, Seneski said, noting that Ford has also announced a $3 billion trust preferred redemption in 2011.

Ford management also said the company plans to contribute $1.6 billion to its pension fund in 2011 and now expects its worldwide pension status will be fully funded in the next few years. Ford ended 2010 with an $11.5 billion shortfall.

Ford ended 2010 with $27.9 billion in automotive liquidity and achieved net cash of $1.4 billion. The company's priorities for its cash continue to be investing in product, growth and the balance sheet, Schloss said.

Ford is a Dearborn, Mich.-based domestic carmaker.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.