Just as other Detroit carmakers are clamoring for more federal loans, Ford has managed to reduce its debt by almost $10 billion. The news resulted in the stock price of Ford spiking by over 15% - a rare occurrence for U.S. carmakers considering the state of the market.

Ford's debt reduction amounted to $9.9 billion, a figure that was slightly less than a predicted $10.4 billion saving. Nevertheless, the Blue Oval described its debt reduction efforts as successful, claiming that the move will now allow the company to take "another step toward creating an exciting, viable enterprise".

Ford and its subsidiaries used a total of $2.44 billion in reducing the debt, around $200 million more than was originally anticipated. By convincing debt holders to take Ford equity in lieu of cash repayments, Ford's total debt has been decreased by over one-third. Additionally, its interest expenses have also been massively reduced, saving Ford around half-a-billion dollars every year.

Despite the rise in stock price and the reduction of debt, Ford is still expected to make "sizable losses" this year, reports Automotive News. Times may become especially tough at Ford if suppliers are forced to shut due to trouble at GM and Chrysler, and if this is the case then Ford may have to turn to the government for loans as well.

Ford's success in swapping its debt for stock has been an easier proposition for the Blue Oval when compared to companies such as Chrysler and GM. Ford's equity remains relatively steady, and its operations are in much better shape than its Detroit siblings, giving debt holders much greater confidence to swap their debt for equity in the future as well.