Ford Motor Company: a different path.(The U.S. Motor Vehicle Industry: Confronting a New Dynamic in the Global Economy)

Ford Strengthens Capital Base and Market Share

As previously discussed, Ford was able to take an independent path because of seemingly fortuitous planning in 2006 when credit markets were still strong. At that point, Ford was engaged in a relatively urgent move to recapitalize the company. Ford raised or borrowed $23.5 billion, which was secured by all of its domestic assets, including its intellectual property and even the company's iconic blue oval trademark. In addition, it sold Jaguar and Land Rover to the Tata Group of India. (117) Divesting these and other assets raised $3.7 billion in additional capital. As part of this restructuring, Ford reduced North American operating costs by more than $5 billion, closed 17 plants, and cut 12,000 salaried and 44,000 hourly employees. (118) …