Ford to accelerate debt repayments

FORD Motor Co CEO Alan Mulally has said the auto maker plans to speed up its debt repayments as its financial condition continues to improve.

Mulally also told reporters at a briefing on its new vehicles last Friday that Ford will keep its advantage over Chrysler and General Motors next year. Ford has gained sales and market share while its Detroit competitors were forced to take government aid and go through bankruptcy protection.

Ford has about US$27 billion in debt. Mulally said the company repaid US$10 billion this year and has sold US$1.6-billion worth of stock.

He said the auto maker will accelerate payments as it continues to move toward profitability in 2011.

Ford mortgaged all of its assets three years ago to borrow US$23.5 billion. The loans allowed it to avoid bankruptcy.

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