Both GM and Ford Looking to Reduce Debt

Ford and GM, two major American car manufacturers, have made a strong effort toward reducing their debt loads. Over the past year, Ford has shown its commitment to both electric and environmentally friendly automobile research with the release of several fuel efficient models such as the Ford Fusion hybrid, which was Motor Trend's Car of the Year for 2010, the Ford Fiesta, and several other fuel efficient models that will be released over the next year and be found at a Philadelphia Ford dealership. Fuel efficient models from past years may be found at a Bradenton used cars dealer.

German manufacturer Volkswagen may be releasing a Volkswagen hybrid model within the next year as it attempts to become more competitive in the electric vehicle market. The new Volkswagen model may be found at a local Peoria Volkswagen dealer in the near future.
GM and Ford, and foreign competitors have intentions on expanding their vehicle lines to include electric models to help them improve profits and get models into new markets both domestically and abroad.

Ford and GM intend on spending any additional profits they make from their latest electric models to be spent toward improving their credit and reducing debt loads. Last month, Ford made a major payment to the UAW of $3.8 billion toward a $859 million payment that Ford was behind on. Ford has approximately $27 billion in debt, and although 2009 saw GM and Chrysler take major government assistance, Ford previously took out its loans from sources outside of the government in 2006.

GM currently owes $15.4 billion and it is also looking for a revolving line of credit of up to $5 billion. Both GM and Ford are behind on their pension funding and GM will hold an IPO later on in 2010 to help the company get to date with its pension funding and reduce overall debt.