Ford Accounts for A Major Financial Blow from Corona Crisis

Ford Accounts for A Major Financial Blow from Corona Crisis

Car manufacturer Ford is taking into account a significant financial blow due to the corona crisis.

 

The American group, which is struggling with shut-down factories and many closed showrooms, therefore does not rule out taking additional measures to get through this difficult time.

Adjusted for interest and tax, for example, Ford expects a loss of approximately $ 600 million in the first quarter.

According to an initial estimate, sales would have decreased by approximately 16 percent compared to the same period last year, to $ 34 billion. Ford will not release its actual first-quarter figures until later this month.

In a statement, Financial Director Time Stone emphasizes for the time being that all options remain open when it comes to measures to arrange additional financing and to strengthen the balance sheet.

According to him, Ford is also looking at possible operational interventions to improve the financial position. Stone did not provide further details of options under investigation.

At least for the time being, Ford expects to have enough cash in hand to get through the crisis at least through the third quarter, even if production does not resume and additional measures are not taken.

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