Currently reading: Ford spurns government cash

Blue Oval steps away from the brink on funding

Ford has distanced itself from its Detroit neighbours, GM and Chrysler, by turning down US government money.

The terms of the bailout agreed by the House of Representatives last night are so restrictive that Blue Oval bosses are doing everything they can to avoid taking federal loans.

"Ford is a company trying to pull itself up by its own bootstraps, and making it on its own and pulling the right levers," executive chairman Bill Ford Jr. told reporters.

Since negotiations for aid began, Ford has only ever asked for a line of credit, which it would be able to access if the economic conditions worsen.

The Blue Oval is now relying on its overseas operations - particularly the successful Ford Europe - to prop up the business and is rushing forward new, greener models like the Ford Fusion hybrid.

Ford set up a $24 billion credit line with banks in 2006 and this has allowed it to shift to building smaller cars and researching future technologies more quickly and effectively than GM or Chrysler.

It was also able to streamline more quickly - selling Aston Martin, Jaguar and Land Rover.

CEO Alan Mulally believes Ford will be able to weather the global economic storm on its own if “current economic conditions remain relatively stable”.

But the company is continuing in its efforts to secure $9bn of emergencies-only government funds as a contingency plan.

Mulally has also stated that he will offer his resignation if the firm needs to dip into government money.

Will Powell

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