Ford Motor Company Strengthens Liquidity with Renewed Credit Facilities Totaling $18 Billion

Ford Motor Company has entered into new amendments to its existing syndicated credit agreements, enhancing its financial flexibility with over $18 billion in total available credit across multiple facilities. The latest amendments extend maturities and update terms without altering the overall commitment size.

Updated Credit Facility Structure
Main Credit Agreement:
Ford now holds $3.4 billion in commitments maturing in 2028 and $10.1 billion maturing in 2030, simplifying and consolidating prior maturities that spanned from 2026 to 2029.

Supplemental Revolving Credit Agreement:
Maintains a $2.0 billion commitment, now extended to mature in 2028.

364-Day Revolving Credit Agreement:
Totaling $2.5 billion, this facility’s maturity has been extended by one year to 2026.

All facilities remain unsecured and fully guaranteed by Ford, and none contain material adverse change clauses or credit rating-based borrowing triggers, ensuring reliable access to liquidity even during potential market stress.

Sustainability-Linked Loan Structure
Interest rates under these agreements are primarily tied to market benchmarks such as Daily Simple SOFR, with margins that may adjust based on Ford’s performance against pre-defined sustainability metrics:

Greenhouse gas emissions from global manufacturing

Use of carbon-free electricity

Tailpipe CO₂ emissions in Ford’s European vehicle portfolio

This structure incentivizes continued progress in Ford’s environmental initiatives while reducing financing costs when goals are met.

Covenants and Liquidity Safeguards
The updated agreements include:

A $4 billion minimum liquidity covenant, requiring Ford to maintain a mix of cash, cash equivalents, marketable securities, and available credit.

Standard affirmative and negative covenants, including requirements to deliver financial statements and limits on mergers, liens, and sale-leasebacks.

Provisions ensuring continued access even in the absence of two investment-grade credit ratings, provided certain subsidiaries maintain guarantees.

These amendments provide Ford with a robust liquidity buffer to support operations, investments, and working capital needs as it continues executing its strategy across electric vehicles, global manufacturing, and next-generation technology platforms.

Auto Stocks Tumble as Tariff Tensions Mount; Investors Turn to Dealers, Domestic Producers

A sharp rise in tariffs has hit the auto industry hard, dragging the S&P 1500 Automobiles and Components Index down nearly 40% this year. The 25% tariff, introduced by the Trump administration, targets cars and auto parts imported into the U.S., with credits for domestically produced components. The policy aims to boost U.S. production, but it has brought short-term turbulence for automakers, suppliers, and investors.

Imported vehicles, which made up about half of U.S. sales in 2024, are now significantly more expensive, with average prices nearing $48,000. In response, several automakers have implemented import surcharges, paused production, raised prices, and announced layoffs. Fewer dealer incentives and longer car ownership cycles are expected as a result.

Amy Ge, manager of the Fidelity® Select Automotive Portfolio (FSAVX), is leaning toward U.S. auto dealers and parts retailers, citing their relative insulation from direct tariff impacts. She believes used car prices may remain high due to tighter new car supply, benefitting dealer margins. Ge also notes that domestic electric vehicle (EV) makers and luxury brands with in-country production may have a competitive edge under current policy conditions.

While some industry players are adjusting to the new landscape, many face ongoing uncertainty as the full impact of tariffs, trade negotiations, and possible exemptions remains unclear. Investors are advised to prepare for continued volatility across the auto sector.

Source: www.fidelity.com

Ford Q1 2025 Sales Soar: Best Pickup Start in Over 20 Years, Electrified Vehicle Sales Reach Record High

Ford Motor Company kicked off 2025 with a strong performance, recording its best first-quarter pickup truck sales in more than two decades and setting a new record for electrified vehicle sales. U.S. retail sales rose 5% in Q1, fueled by a 19% surge in March.

F-Series and Pickups Lead the Charge
The F-Series, America’s best-selling truck, saw sales grow 24% in Q1, including a 38% spike in March alone. Total Ford pickup sales—including the F-Series, Ranger, and Maverick—reached 243,317 units. The Maverick hit an all-time monthly sales record in March with 19,008 units sold.

Electrified Vehicles Hit New Highs
Ford sold a record 73,623 electrified vehicles in Q1, up 26% from last year, with hybrids and EVs up 33% and 12%, respectively. Mustang Mach-E sales set a Q1 record at 11,607 units, while E-Transit sales rose 30%. The hybrid Maverick became the top-selling hybrid pickup in the U.S. with 21,414 units sold. Electrified vehicles made up 15% of Ford's total Q1 sales.

Off-Road Vehicles Gain Ground
Sales of off-road performance models jumped 20% to 105,222 vehicles. Bronco sales surged 35% to 32,595 units, and the Bronco family (including Bronco Sport) totaled 65,958 vehicles—up 19% year-over-year. Bronco also outsold Jeep Wrangler in December 2024 and January 2025, based on latest registration data.

Ford Pro, BlueCruise, and Remote Services Expand
Ford Pro Intelligence software subscriptions grew 20% year-over-year, reaching approximately 674,000. The company’s BlueCruise hands-free driving tech continues to gain traction, with an estimated 5 million cumulative hands-free highway hours. Meanwhile, Ford and Lincoln dealers conducted over 879,000 remote services in Q1, including more than 500,000 Mobile Service visits.

Despite a 1% overall sales dip driven by reduced fleet deliveries and discontinued models, Ford’s strong retail momentum, robust pickup and EV sales, and growing service platforms underscore its continued transformation under the Ford+ strategy.

For more details, visit [corporate.ford.com](https://corporate.ford.com).

Ford Motor Company reported its fourth-quarter and full-year 2024 financial results. Fourth-quarter revenue was $48.2 billion, with a net income of $1.8 billion and an adjusted EBIT of $2.1 billion. Full-year revenue was $185 billion, with a net income of $5.9 billion, an adjusted EBIT of $10.2 billion, and an adjusted free cash flow of $6.7 billion. The company announced regular and supplemental dividends of 15 cents per share, payable on March 3. The outlook for 2025 includes an adjusted EBIT between $7.0 billion and $8.5 billion, free cash flow between $3.5 billion and $4.5 billion, and capital spending between $8 billion and $9 billion. Ford's leadership stated that the company will continue its Ford+ transformation, focusing on quality, cost management, and long-term financial performance.

Ford Motor Company announced a pre-tax remeasurement gain of approximately $0.7 billion related to its pension and other postretirement employee benefits (OPEB) plans for the fourth quarter of 2024. The gain includes:

- A $0.3 billion loss for U.S. pension plans.
- A $0.9 billion gain for pension plans outside the U.S.
- A $0.1 billion gain for global OPEB plans.

The remeasurement gain, driven by higher discount rates compared to year-end 2023 but partially offset by lower-than-expected asset returns, will increase Ford's net income by $0.4 billion after taxes. Since this is classified as a special item, it will not impact the company's adjusted EBIT or adjusted earnings per share.

Ford stated that this remeasurement had no cash impact in 2024 and does not alter expectations for 2025 pension contributions. At year-end 2024, the underfunded status for its pension plans is expected to be around $0.5 billion, down from $2.3 billion at year-end 2023, while OPEB plans are projected to have an underfunded status of $4.4 billion, compared to $4.7 billion the previous year. Ford emphasized that its funded plans remain fully funded.

Cox Automotive reports that electric vehicle (EV) sales in the U.S. reached a record 1.3 million units in 2024, a 7.3% increase compared to 2023. The fourth quarter alone saw a 15.2% year-over-year rise in sales, highlighting strong demand driven by automaker incentives, competitive lease deals, and government programs. Despite Tesla's dominance in the EV market with the Model Y and Model 3 accounting for over 40% of total EV sales, the company experienced a year-over-year decline of over 37,000 units. In contrast, brands like General Motors and Honda significantly increased their sales, contributing to the market's growth.

The hypercompetitive U.S. EV market introduced 17 new models in 2024, with vehicles like the Ford Mustang Mach-E and Hyundai Ioniq 5 gaining traction alongside Tesla's lineup. The introduction of the Tesla Cybertruck also marked a notable milestone. Cox Automotive forecasts further growth in 2025, expecting EVs to comprise nearly 10% of total vehicle sales, driven by the launch of more than 15 new products, improved charging infrastructure, and sustained incentives. Although potential policy changes in Washington could slow this momentum, the market's expansion is expected to continue as buyers move quickly to take advantage of current benefits. (Source: Cox Automotive)