US carmaker Ford has admitted that it plans to borrow $18 billion to get back on its feet from its rapidly worsening financial condition. What’s more, Ford has also admitted that it was pawning its US plants as collateral for the latest loans.
Ford said that it needed the money to help pay for the restructuring of its North American operation. This rattled Ford investors and following the announcement, Ford shares fell 4%.
Ford, which is the second largest carmaker in the US had been finding it extremely hard to cope with flagging sales in the US market. It had recently revealed a 30-fold increase in its quarterly losses at $5.8 billion. Its tumbling fortunes are having an adverse effect on other US rival carmakers like General Motors and Chrysler.
