CORRECT: Ford: No Aid Needed Even If US Market Falls To 9 Million This Year
09 April 2009 - 5:17PM
Dow Jones News
Ford Motor Co. (F) said it can survive 2009 without needing
federal aid, even if the new vehicle selling rate in the U.S. drops
to 9 million units.
Ford executives, speaking to analysts Wednesday in New York,
said they are counting on $2 billion in Department of Energy
funding and a western Europe selling rate of between 12.5 million
and 13.5 million cars and trucks to help offset the slumping U.S.
rate.
Details of the meeting were reported in a research note
published by Barclays Capital analyst Brian Johnson Thursday.
Johnson said he is "increasingly comfortable" Ford will be able
to meet its minimum cash requirements and will finish the year with
$14.5 billion. However, he places the Dearborn, Mich.-based auto
maker's equity value at $1.
"Although Ford's prospects appear to be improving, we continue
to model losses in 2009 in all regions except South America,"
Johnson said. "In particular, we estimate a $5.2 billion loss in
North America."
A Ford spokesman wasn't immediately available for comment.
Ford has been quickly locking in cost-cutting efforts with its
unions and executives in an effort to control expenses amid the
global automotive sales slowdown. Ford has not yet accessed
low-interest loans from the U.S. Department of Treasury unlike its
competitors, General Motors Corp. (GM) and Chrysler LLC.
Ford has also applied for $10 billion in Department of Energy
funds to boost its fuel-efficiency research and development. The
auto maker told analysts it expects to receive $2 billion of that
money sometime this year.
The U.S. selling rate at the end of March stood at 9.8 million
vehicles. Ford sales analysts George Pipas has said the number
actually finished in the low 9-million range, excluding the selling
of vehicles to fleet operators.
Ford shares rose 35 cents or 8.3% to $4.28 in earlier trading
Thursday.
-By Jeff Bennett; Dow Jones Newswires; 248-204-5542;
jeff.bennett@dowjones.com