The announcement follows on almost $1 billion worth of debt-for-equity trades the company has made in the past year. So far there has been no time frame for the half-billion dollar stock sale, but it's like to come in increments and sooner rather than later, to help keep Ford's head above water. The primary purpose of the deal is to reduce debt, according to Ford Spokesman Bill COllins, reports Automotive News.
Ford recently reported a net loss of $8.7 billion for the second quarter of 2008, though that abnormally high figure included a one-time charge-off of $5.3 billion in impairments on long-term assets. Another $2.1 billion hit was taken from the company's lease operations, which have been hit hard by rapid devaluation of SUVs as fuel prices hit record highs over the past six months. Revenue was also down, from $44.2 billion in Q2 2007 to $38.6 billion this year, largely thanks to a weak overall market and slumping SUV and pickup sales.