I wonder what the UAW deal really means. Saving a half billion a year may just mean that the labor and legacy debt will increase not as quickly as it might without the deal.

half a billion on 10 billion savings is 5%. Creative accounting can take of it. The question is how 10 billions are saved. And in this climate of falsifying returns, profits etc it is really interesting what revolutionary steps Ford made to reduce debt by 10 billions.

Ford’s stock has almost doubled in the past 3 weeks…

I’m not 100% but I’m confident Ford will be the #2 automaker in the world in a couple years, maybe sooner if GM files chapter 11. If Ford can weather this storm, oh boy, even if the market shrinks under 10 million units, Ford’s increased market share from those scared to buy from a bankrupt automaker makes up for the loss of overall new vehicle sales.

Borat, you’re such a skeptic. I for one accept wholeheartedly that Ford has sunshine, lollipops and rainbows coming out of their bunghole and that no artificial ingredients, animal testing, child labor or peanuts were used in their production.

Jake, I think you’re dead on. It’s rapidly becoming apparent that just as many people are aware Ford has not received any Fed money as there are folks who know GM and Chrysler have. It wasn’t that way at the start of this whole fiasco where the masses just assumed they were all evil by association.

Here Borat… this is the official press release

and no I have not read it all.

FORD COMPLETES DEBT RESTRUCTURING INITIATIVES; REDUCES DEBT BY $9.9 BILLION AND LOWERS ANNUAL INTEREST EXPENSE BY MORE THAN $500 MILLION

* In total, Ford and Ford Credit will use $2.4 billion in cash plus 468 million shares of Ford common stock to reduce Ford’s outstanding Automotive debt by $9.9 billion from $25.8 billion at Dec. 31, 2008. This will reduce Ford’s annual cash interest expense by more than $500 million based on current interest rates

* This successful debt restructuring, together with previously announced agreements with the United Auto Workers, will substantially strengthen Ford’s balance sheet

* Approximately $4.3 billion principal amount of Ford Motor Company’s 4.25% Senior Convertible Notes due December 15, 2036 were validly tendered and accepted for purchase pursuant to Ford’s conversion offer. Ford will use $344 million to pay a cash premium to convertible note holders who validly tendered

* Ford Motor Credit Company today separately announced the final results of its previously announced $1.3 billion cash tender offer for Ford’s unsecured, non-convertible debt securities. Based on the tenders received, Ford Credit will use $1.1 billion in cash to purchase $3.4 billion principal amount of Ford’s unsecured notes

* As previously announced, Ford Credit used $1 billion to purchase $2.2 billion principal amount of Ford’s term loan debt at a price of 47 percent of par.

DEARBORN, Mich., April 6, 2009 – Ford Motor Company (NYSE: F) announced today the successful completion of debt restructuring initiatives that will reduce Ford’s Automotive debt by $9.9 billion from $25.8 billion at December 31, 2008, and lower Ford’s annual cash interest expense by more than $500 million based on current interest rates.

“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.”

Previously Announced Debt Restructuring Initiatives

On March 4, 2009, Ford and Ford Credit announced the major components of a comprehensive debt restructuring: (1) a conversion offer in which Ford offered to pay a premium in cash to induce the holders of any and all of the $4.88 billion principal amount outstanding of its 4.25% Senior Convertible Notes due December 15, 2036 (the “Convertible Notes”) to convert the Convertible Notes into shares of Ford’s common stock (the “Conversion Offer”); (2) a $500 million cash tender offer by Ford Credit (the “Term Loan Offer”) for Ford’s senior secured term loan debt (the “Term Loan Debt”); and (3) a $1.3 billion cash tender offer (the “Notes Tender Offer”) by Ford Credit for certain of Ford’s unsecured, non-convertible debt securities (the “Notes”).

Results of Conversion Offer
The Conversion Offer expired at 9:00 a.m., New York City time, on April 3, 2009 (the “Expiration Date”). As of the Expiration Date, approximately $4.3 billion principal amount of Convertible Notes were validly tendered and accepted for purchase, according to information provided by Computershare, Inc., the Exchange Agent with respect to the Conversion Offer. This will result in the issuance of an aggregate of approximately 468 million shares of Ford’s common stock and the payment of an aggregate of $344 million in cash ($80 in cash per $1,000 principal amount of Convertible Notes converted), plus the applicable accrued and unpaid interest on such Convertible Notes, on the expected settlement date of April 8, 2009. Upon settlement of the Conversion Offer, approximately $579 million aggregate principal amount of Convertible Notes will remain outstanding.

Holders who validly tendered and did not withdraw their Convertible Notes by 9:00 a.m., New York City time, on the Expiration Date and whose Convertible Notes were accepted for purchase will receive, for each $1,000 principal amount of the Convertible Notes converted, 108.6957 shares of Ford’s common stock plus $80 in cash and the applicable accrued and unpaid interest.

Previously Announced Results of Term Loan Offer
On March 23, 2009, Ford Credit announced that the Term Loan Offer, which expired at 5:00 p.m., New York City time, on March 19, 2009, had been over-subscribed. Based on the tenders received, Ford Credit increased the amount of cash used from $500 million to $1 billion to purchase $2.2 billion principal amount of Ford’s Term Loan Debt at a price of 47 percent of par. This transaction settled on March 27, 2009, following which Ford Credit distributed the Term Loan Debt to its immediate parent, Ford Holdings LLC. The distribution of the Term Loan Debt is consistent with Ford Credit’s previously announced plans to pay distributions to Ford of about $2 billion through 2010.

Approximately $4.6 billion aggregate principal amount of Term Loan Debt remains outstanding.

Concurrent with this announcement, Ford Credit separately announced today by press release the results of its previously announced $1.3 billion cash tender offer for Ford’s unsecured, non-convertible debt securities. As of the April 3, 2009 expiration date of the Notes Tender Offer, approximately $3.4 billion principal amount of Notes were validly tendered and accepted for purchase, according to information provided by Global Bondholder Services Corporation, the Depositary and Information Agent with respect to the Notes Tender Offer. This will result in an aggregate purchase price for the Notes of approximately $1.1 billion, to be paid by Ford Credit on the expected settlement date of April 8, 2009. Upon settlement of the Notes Tender Offer, such Notes will be transferred from Ford Credit to Ford in satisfaction of certain of Ford Credit’s tax liabilities to Ford. After settlement of the Notes Tender Offer, approximately $5.5 billion aggregate principal amount of the Notes will remain outstanding.

In addition, as Ford previously announced, it has elected to defer future interest payments related to the 6.50% Cumulative Convertible Trust Preferred Securities of Ford Motor Company Capital Trust II (the “Trust Preferred Securities”), which will result in the deferral of $184 million in interest on the Trust Preferred Securities annually.

Ford Shares are up 22% today.

I guess the people that know a little about Ford,s future are talking with their money.

Go Ford! Very good move in their part. I like how they havnt taken any loans from the government and they have used every tactic to reduce costs that the government is making GM and chrysler do, and actually beating them to it.

after 20 years in the car business, the quality of todays Ford product is what I am most excited about.
15 to 20 years ago, the only Ford to own was a full-size truck. Today, the whole product line has above average reliability ratings. American’s are producing good products. Don’t be the last person to notice.

This is how an American company should operate to get back on their feet. Without need for government bailout, I think Ford will be in a position to overtake GM domestically. I’m encouraged by the products that they anticipating on introducing into the US soon (not so thrilled with some of the products in the current line up). I think it took an outside perspective (Mulally coming from Boeing) for Ford to reevaluate their position and point in the right direction. This is the kind of leadership (not management) that American companies need to rebuild our country’s position in the world of manufacturing.

SHOspeed – I also think Mulally wanted to avoid taking the money because I think he knew how brutal the Congressional scrutiny would be. I think this will make Ford even more respected for digging themselves out and being successful at it.

I just want to be the one who mentioned this – Who honestly thought Ford would be the one looking the best through these dark times? A couple of years ago, I could have swore Ford would be filing for bankrupcy and GM would be the one looking like a success. This just shows you good product (see Malibu/Camaro/G8/CTS) doesn’t count for everything.

Good product is important, and after ignoring the car side of things for years, Ford is paying attention and making some nice improvements.

GM likewise has some good product, but many of them are unknown to people. I challenge you to ask the average person what they think of Saturn. Yet how much money’s been spent “turning Saturn around”?! It’s just an example, but a telling one.

Ford is no doubt the best out of the Big Three. GM still needs improvement on their quality and safety, Chrysler just needs to flat out go bankrupt.

When you look at the publics outrage about “bailout nation”, one should realize what Ford did, or did not, take any of the taxpayers money to survive,was brilliant and rare. Not only did GM and Chrysler take government money, but Toyota and Honda as well as several European makers took their government’s money. That complete message needs to spread. Ford has negotiated and risked itself in preperation for this economy that is set to consume only 10 million new vehicles this year. The good thing is that the scrap rate is at about 12 million vehicles so pent up demand is building and Ford will benefit from not taking money and surviving…what a story if they can pull it off.

3 weeks ago I invested in Ford. It was brilliant in its decision not to take bailout money. Alan Mulally is a very savy leader. With the new Mustang and Fusion now arriving at dealerships they are poised to take there rightfull place in leading the American Auto industry.

This is good news indeed. At least Ford is on their game. We’ll be shopping for a new car some time next year and as it stands right now, Ford is the only domestic brand I would consider simply because I have the most faith they’ll still be around for the amount of time that I will own the car.

As much as I am a fan of Ford’s, I would sure like to meet a salesman employeed by them who actually knows there own product line.