Ford burns through $5.5 billion in 4th quarter as losses mount

Ford Motor Co., the only U.S. automaker working without federal loans, burned through $5.5 billion in cash in the last three months of 2008 as losses augmented.

Ford completed the year with cash reserves of $13.4 billion as it tries to shun borrowing money from the U.S. government. Ford said it is right away drawing down $10.1 billion in obtainable credit lines as of concerns regarding the unsteadiness of the capital markets and the unsure economy.

The concern reported a remaining loss of $5.9 billion for the fourth quarter, compared with a loss of $2.8 billion a year prior, capping its third straight year without a profit. The pre-tax functioning loss, excluding particular items, was $3.7 billion, compared with a loss of $620 million during the akin term in 2007.

Some analysts tell that Ford requires at least $10 billion on hand to run its functions. At the present cash burn rate of $1.83 billion a month, Ford would have crossed that doorsill by the end of February.

Drawing down the $10.1 billion would give Ford on the whole liquidity of $23.5 billion, less the amount of cash been utilized thus far in January. Based on its present hypothesis, Ford carries on to say it has sufficient liquidity to fund its business plan.
Ford executives have told that they might ask for government assistance if industry sales don't begin to recover this year.

U.S. rivals General Motors has got $9.4 billion in loans so far, part of a $13.4 billion packaged approved by President George W. Bush. Chrysler LLC has got $4 billion and says it requires at least $3 billion more. ...