Ford Motor on Thursday moved to hoard money on its steadiness sheet, drawing down $15.4 billion from two credit score strains and suspending its dividend, in a transfer to bolster reserves to experience out injury to its enterprise from the coronavirus pandemic.
The No. 2 U.S. automaker, whose shares have been up 0.4% at $4.52 after sinking as a lot as eight.9% in early buying and selling, additionally deserted its 2020 monetary forecast and stated the money could be used to cope with a squeeze on capital attributable to shutdowns in manufacturing because of the quick-spreading virus.
Evaluating the present scenario to the 2008-2009 monetary disaster, Chief Govt Jim Hackett mentioned Ford was putting in safeguards to guard its enterprise.
Ford has come underneath fireplace from some analysts on Wall Road for shifting too slowly to chop prices and restructure its enterprise.
At the end of 2019, it had booked solely $three.7 billion of the projected $11 billion in prices it beforehand stated it will soak up its world restructuring.
All three Detroit automakers have seen U.S. workers check constructive for COVID-19, the contagious respiratory sickness attributable to the virus.