Ford Raises $1.4 Billion Via Stock Offering
Yesterday, Fusion Ford reported that the Ford Motor Company hoped to raise as much as two billion dollars by issuing 300 million shares of common stock, an amount that was to be determined after the Wall Street bell sounded on Tuesday. Ford did sell all of its shares but had to settle on getting $1.4 billion as its stock price slipped by 17% during the day.
New Models Set For Release
Likely, bad news from General Motors stoked some of the decrease as did investor angst over Ford issuing stock in the first place, a move that was seen by some as watering down the value of previously issued common stock. Ford is in a better position than its chief rivals — General Motors and Chrysler — but they are still battling to restructure the company as they continue to roll out several new models over the coming months including the next generation Ford Taurus and Lincoln MKT.
Last night, The Wall Street Journal reported that Ford’s stock closed at $5.01 a share, down from $6.07 one day earlier. Ford priced its offering at $4.75 and the shares were quickly sold. Most of the money will help fund the company’s health care obligations and go into a trust that Ford must contribute to between now and 2011.
Betting On The Future
Naturally, any buyer of Ford stock believes that the company has a promising future. Its track record under trying financial circumstances has been surprisingly good, losing much less money than most of its rivals while rolling out quite a few new models in a short amount of time.
Last fall, the delayed F-150 pick up truck hit the market as Ford waited for gas prices to retreat before introducing the next generation of its extremely popular truck. Following that, Ford introduced in March its all new Ford Fusion, Mercury Milan and Lincoln MKZ midsize sedans including a pair of hybrid models for the Fusion and Milan.
Most recently, the 2010 Ford Mustang rolled out, marking the 45th anniversary of the iconic pony car. The new Ford will take on the Dodge Challenger and the revived Chevrolet Camaro, the first time in decades that all three manufacturers fielded these types of vehicles at the same time.
More New Models To Follow
Come this June, an all new Ford Taurus (no Mercury version) will hit the market, a larger more luxurious model than the one it replaces. It’ll be followed early this Fall by the Lincoln MKT, a large crossover that will share its platform, but little else with the Ford Flex.
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