Ford pulls out 2020 guidance and suspends dividend due to Coronavirus (Covid-19) pandemic

MANILA: On Thursday, Ford declared the suspension of its dividend  and withdrawal of its 2020 guidance as it reinforces its finances amid the Covid-19 outbreak.

Ford also reported its withdrawal of US$15.4 billion from two credit lines, and plans to loan $13.4 billion under the company’s corporate credit facility. Under the supplemental credit facility, Ford will also borrow an additional $2 billion.

The loan is expected to alleviate the decline of shares by 2% in early trading to $4.40 upon reaching 8% pre-market. In mid-afternoon on Thursday, the shares of the automaker dipped to 3%.

Ford CEO Jim Hackett said that similar to what they did during the Great Recession, the company is handling the Covid-19 crisis efficiently. The company mainly aims to secure their company, employees, dealers, and consumers during this critical period.

He also pointed out that being the biggest manufacturer of vehicles and the largest employer of automobile workers in the United States, Ford intends to arise from this turmoil as a more reliable business that can act as a catalyst for economic growth in the future.

The company also stated that it had liquidity of $35 billion and assets of $22 billion during the last quarter of 2019.

In another statement, Hackett explained that Ford, together with its US dealers, will separately provide a range of services to its customers. This will include payment relief for six months, specifically for new car buyers.

Ford offered to pay for three months, and car customers can delay for up to three more months, a total of six months. The payment plan is intended only for individuals buying model-year 2019 and 2020 vehicles, except for the 2020 Super Duty trucks.

Photos from Ford Motor Company