Ford has obtained a new $3 billion USD credit line ahead of a new tariff deadline set for this coming Friday, amidst policy changes regarding polluting emissions and fuel economy regulations in the U.S.
The auto giant can use the funds as it sees fit for one year, but it must maintain at least $4 billion in liquidity during that period, according to a document filed Tuesday with the U.S. Securities and Exchange Commission.
The announcement came just before the company’ release of its second-quarter results set for today, July 30.
"We are strengthening our liquidity and ensuring greater financial flexibility," said Ford spokesperson Ian Thibodeau via a statement.
The impact of tariffs
At the end of March, Ford had $27 billion USD in cash and $45 billion USD in available liquidity. However, this Friday, higher customs duties of at least 15 percent are expected to come into effect for most countries, 50 percent duties will be imposed on copper, and President Donald Trump has threatened to increase import taxes to 35 percent for Canada and Mexico.
As we've reiterated, the tariff situation is throwing a wrench into manufacturers' plans. It significantly reduces their profits and, in some cases, as we reported this week regarding Stellantis, it only makes the company's financial situation more precarious.