- Carmaker, Ford, has revealed its intent to suspend the payment of dividends and mobilise resources
- This comes as the coronavirus continues to affect people all over the world and claim lives
- The company said it would draw $15.4 billion from two credit lines and would borrow $13.4 billion under a corporate credit facility
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Car making company, Ford, has outlined plans of suspending payment of dividends as it attempts to mobilise resources in the wake of the coronavirus epidemic.
The company explained it intends to draw $15.4 billion from two credit lines and would borrow $13.4 billion under a corporate credit facility.
As part of the emergency measures, Ford would also secure an additional $2 billion under a supplementary credit facility.
READ ALSO: Ghana to resort to the IMF and World Bank to help with resources to fight the coronavirus - Finance minister
Per a report by CNBC, the company’s shares fell by 2% in early trading to $4.40 after a pre-market downslide of 8%.
The Chief Executive Officer (CEO) of the company, Jim Hackett, noted that Ford intends to manage the crisis in such a manner that the business, its employees, customers and dealers are protected.
He added that it plans to emerge from the effects of the coronavirus as a stronger company that can engineer the recovery of the economy in the future.
Ford has claimed that it has $35 billion in liquidity and had $22 billion in cash at the end of 2019.
It also stated that its customers have been offered a wide range of services including six months of payment relief for some new-car buyers.
The company added that customers purchasing 2019 and 2020 models of the vehicles would enjoy between three to six months deferment in payments.
However, the package excludes purchases of its 2020 Super Duty trucks.
In other news, the coronavirus has led to a wipeout of all gains recorded by Tesla Inc. in the year 2020.
On Wednesday, March 18, 2020, the company started trading with a 9% loss, priced at $390 per share and recorded more losses in a panic-stricken market.
Tesla has lost almost 7% from the end of the year 2019.
The coronavirus outbreak consequently led to the closure of Tesla’s Gigafactory in Shanghai for two weeks following a directive from the government as China raced to contain the virus.
READ ALSO: Coronavirus: 4 big tech companies lose over $1 trillion
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