Ford announced on Monday that it has slashed its automotive debt by 38 percent. That translates into $9.9 billion in savings for the Blue Oval and is just the latest in a number of cost-cutting steps intended to help the Dearborn-based automaker return to profitability.
According to Automotive News, Ford used a combination of cash and common stock to reduce its debt by $9.9 billion. At the end of 2008, Ford’s automotive debt totaled $25.8 billion.
Ford has also reached a deal with the UAW to greatly reduce costs associated with retiree healthcare. Early indications suggest Ford’s deal with the UAW will save the company $500 million per year.
“By substantially reducing our debt, Ford is taking another step toward creating an exciting, viable enterprise,” Ford CEO Alan Mulally said in a statement. “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.”
Ford was the only of the Big Three not to take a government bailout loan.
