Ford to pay $4 billion, halving debt owed to union health fund
Ford Motor Co., the only Detroit automaker to avoid bankruptcy protection, said it will reduce its debt by another $4 billion as it continues to show signs of financial strength.
The Dearborn, Mich., automaker will pay $3.8 billion in cash to a United Auto Workers trust fund that pays retiree health care bills, and it will pay out $255 million in dividends on preferred securities that had been deferred as the automaker worked its way through financial troubles. After the payment, Ford will owe the UAW trust about $3.6 billion.
The automaker said the actions, combined with a $3 billion debt payment in April, will reduce its total debt to about $27 billion from $34 billion at the end of the first quarter.