- Carmaker, Ford, has revealed its intent to suspend the payment of dividends and mobilise resources
- This comes as the coronavirus continues to affect people all over the world and claim lives
- The company said it would draw $15.4 billion from two credit lines and would borrow $13.4 billion under a corporate credit facility
Car making company, Ford, has outlined plans of suspending payment of dividends as it attempts to mobilise resources in the wake of the coronavirus epidemic.
The company explained it intends to draw $15.4 billion from two credit lines and would borrow $13.4 billion under a corporate credit facility.
As part of the emergency measures, Ford would also secure an additional $2 billion under a supplementary credit facility.
Per a report by CNBC, the company’s shares fell by 2% in early trading to $4.40 after a pre-market downslide of 8%.
The Chief Executive Officer (CEO) of the company, Jim Hackett, noted that Ford intends to manage the crisis in such a manner that the business, its employees, customers and dealers are protected.
He added that it plans to emerge from the effects of the coronavirus as a stronger company that can engineer the recovery of the economy in the future.
Ford has claimed that it has $35 billion in liquidity and had $22 billion in cash at the end of 2019.
It also stated that its customers have been offered a wide range of services including six months of payment relief for some new-car buyers.
The company added that customers purchasing 2019 and 2020 models of the vehicles would enjoy between three to six months deferment in payments.
However, the package excludes purchases of its 2020 Super Duty trucks.
Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!