Ford Motor Company says that it will reduce its debt by paying $3.8 billion to the UAW’s Retiree Medical Benefits Trust by the end of the day today.
The automaker’s $3.8 billion payment will reduce its debt to the fund to around $3.6 billion. Ford will also pay $255 million in deferred dividend payments to the healthcare fund.
Along with other payments made earlier this year, Ford says that it has reduced its overall debt by about $7 billion to around $27 billion. That’s still a high number, but the automaker is confident that it is on the right path.
“Our One Ford plan to profitably grow our business is working, and we are increasingly confident about our future,†Ford CEO Alan Mulally said in a statement released to the media. “We expect to continue to improve our balance sheet as we deliver on our plan.â€
Mulally still says that the automaker will be “solidly profitable” in 2010.
