Friday, January 30, 2009
CHICAGO: Ford Motor Co announced on Thursday a quarterly loss of $5.9 billion, capping a nightmarish year, but said it had “sufficient liquidity” to fund its turnaround plan without US government aid.
The number two US automaker’s results showed a sharp widening of its losses as auto sales were slammed in the fourth quarter by a deep economic crisis and credit squeeze. But Ford said that unlike rivals GM and Chrysler, it had enough cash to keep operating as it executes a restructuring plan.
“Based on current planning assumptions, it does not need a bridge loan from the US government, barring a significantly deeper economic downturn or a significant industry event, such as the bankruptcy of a major competitor that causes disruption to the company’s supply base, dealers or creditors,” Ford said in a statement.
Ford’s loss in the fourth quarter was more than double the deficit in the same period in 2007 of $2.8 billion.