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Ford seeks to raise $10B
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December 17, 2001: 10:33 a.m. ET
No. 2 automaker files to sell securities as reports say it eyes more job cuts.
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NEW YORK (CNN/Money) - Ford Motor Co. is seeking to raise some badly needed cash through the sale of up to a $10 billion in securities, according to a filing with Securities and Exchange Commission.
The shelf registration statement filed with regulators said it intends to sell up to $6.5 billion in debt securities, preferred, depositary or common stock, warrants or other securities. It also said it considering another $3.5 billion in securities included in an earlier registration statement.
The automaker said it would use the proceeds for general corporate purposes, possibly including debt repayment.
The No. 2 automaker, which warned last week of larger-than-expected losses, is in the midst of a review on how to improve the company's bottom line.
The Wall Street Journal reported Monday that union officials at the Louisville, Ky., plant that makes the Explorer and other sport/utility vehicles, and the Atlanta plant that makes the Taurus and Sable sedans, have been warned that the company is weighing cuts in productions at those plants that could lead to the elimination of jobs.
The company announced earlier this month it would cut matching contributions to employee 401(k) retirement plans and that it would eliminate a production shift at its Edison, N.J., plant.
Ford said last week that Don Winkler, CEO of Ford Financial, resigned from the company. Winkler, 53, joined Ford in 1999 as chairman and CEO of Ford Credit. The resignation comes after Ford lowered fourth-quarter earnings guidance Dec. 5, citing inadequate reserves to cover rising loan and lease defaults.
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Ford's (F: down $0.49 to $15.61, Research, Estimates) shares slipped slightly in early trading Monday. 
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