One of the three major automobile manufacturers, Ford, has not requested or has received any bailout money. The company has decided to weather out the current economic times by managing themselves more efficiently. They have reduced there debt by $9.9 billion dollars from their $25.8 billion dollars causing their share price to increase by 16%. I believe that Ford is taking the right steps by reducing their debt so that they can look at the long term growth. The consumer would also be happier if they saw Ford survive without the assistance of the government whereas the other two American automobile makers were not able to manage themselves efficiently. Shareholders main concern is to make sure the company survives and that the share value increases. As the company is waiting for the economy to turn around the company is getting rid of debt which would reduce interest risk. Clearly, Ford is taking necessary steps to please the shareholders and consumers.
http://news.bbc.co.uk/2/hi/business/7986272.stm
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment