U. S. auto- maker, Ford said it expects to post a pre- tax loss of about $600 million for the first quarter as the coronavirus outbreak battered its sales and shuttered vehicle assembly plants, resulting in a 21percent decline in vehicle sales to dealers versus the same quarter in 2019.
Tim Stone, Ford’s Chief Financial Officer said in a statement that the company has sufficient cash today to get it through at least the end of the third quarter with no incremental vehicle production and wholesales or financing actions.
The company in the statement said it has about $30 billion in cash on its balance sheet, including $15.4 billion it borrowed last month against two existing credit facilities.
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In March, the company shuttered plants in North America and Europe due to the spreading pandemic.
Earlier this month, the automaker said its firstquarter U.S. sales had fallen 12.5percent during the quarter.
The U. S. market, with its highly profitable pickup truck and SUV segments, generates the overwhelming majority of Ford’s profits.
Ford’s U. S. sales chief Mark Laneve said on April 2 that Ford believes some level of government stimulus will be needed for American consumers once the COVID-19 pandemic recedes.
Ford said it expects its first-quarter adjusted loss before interest and taxes to be about $600 million, compared with a profit of $2.4 billion a year ago.
