Ford Applies For $11 Billion In Federal Loans For Retooling

General Motors Corp. and Chrysler LLC are blocked -- at least for now -- from receiving any part of $25 billion in loans for retooling factories that federal officials will begin lending in a matter of weeks.

The U.S. Department of Energy has $25 billion in loans meant to boost production of fuel-efficient vehicles and parts for making them. So far, automakers and parts suppliers have submitted $44.6 billion in requests, including $10.3 billion from GM and $6 billion from Chrysler.

But under the laws governing the loan program, companies must be "financially viable" without the loans to receive them. The Obama administration ruled last week that neither GM nor Chrysler met that standard, giving GM 60 days to rework its restructuring plans and Chrysler 30 days to conclude a partnership with Fiat SpA or face bankruptcy.

That means Ford Motor Co. may be the only Detroit automaker that qualifies for the first round of loans, which Energy Secretary Steven Chu has said would be granted by May. Ford has asked for $11 billion.


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inspirion7 - 4/7/2009 3:47:43 PM

+5 Boost

Ford is showing good financial wisdom in reducing their overall debt, and showing a solid product portfolio. They show they are able to pay back the money at least.

Carboy - 4/7/2009 4:14:38 PM

+2 Boost

I'm actually thinking their representation in this economy is good as well as they can still develop and launch new cars.

Whelan - 4/7/2009 4:54:27 PM

+2 Boost

Sounds like they are taking the right approach to this money. Don't use it to stay alive and keep your head above water. Ford paid down a ****load of their debt first in recent weeks and with a lot of new model updates and other news (Euro Focus coming over), Verve (Fiesta), making a return. Then asking for the money in order to facilitate a retooling. Sounds a lot better than huge layoffs and trying to pay ridiculous UAW debts.

I have a question to someone, why was it that Ford was so able to handle its UAW costs? Did they have a much larger bank roll or were they smarter with there negotiations over the years?

Agent009 - 4/8/2009 8:10:52 AM

+1 Boost

Ford has always had the best relationship with the UAW of the Detroit Three.

I wouldn't doubt the mutual trust there had a lot to do with the bargaining, especially when they laid it all out on the line.

investor27 - 4/7/2009 10:21:42 PM

+3 Boost

"...handle its UAW costs?" You kid yourself. The UAW did not concede a dime for FORD. FORD still has to pay every member of the UAW an outrageous $75 per hour.

Boss - 4/8/2009 2:42:53 AM

+3 Boost

Iam happy that Ford asked for it and did not beg for it like GM,Chrysler
I believe in ford and hope they do good,Ford if your listening please make lincoln a company that can compete with the world I am a luxury car buyer but not loyal to any one brand,As long as the car is nice and I mean nice in n out not like that junk you guys have out their.I can say that I will purchase it.


P.S.get rid of those darn unions.You already offer them health care,pensions and job security so why are you paying the union to do what they cant do without you.

racedogs - 4/10/2009 2:07:39 AM

0 Boost

Sounds like someone did some industrial sabotage on your poor excuse for a brain.