Ford Motor is set raise $2.8 billion in long-term debt, as per a filing with U.S. securities regulators, funds which a senior executive stated, will assist fund investments in new technology consisting of self-driving cars.
Joe Hinrichs, Ford president of the Americas area, said the funds would mainly opt for financial investment in new technology consisting of electric vehicles, self-driving automobiles, and mobility efforts such as ride-sharing and ride-hailing.
“It’s an opportunistic time,” Hinrichs informed Reuters in an interview. “It’s a helpful market for long-term debt given where rates are, and we want to make certain that throughout the cycle of the market we have the versatility to do exactly what we have to do and want to do, specifically in the emerging part of business.”
During the Monday afternoon filing with the Securities and Exchange Commission, Ford stated it will raise $1.5 billion in 10-year notes with a yield to maturity of 4.356 percent and $1.3 billion of 30-year notes at 5.291 percent.
Hinrichs, who has led Ford’s Americas department for 4 years, stated Ford has the production flexibility to make more of its Ford Expedition and Lincoln Navigator large SUVs as the two models undergo their very first overall transformation in 14 years.
Hinrichs did not state how many of the brand-new models it intends to sell. “Suffice to say it is a huge opportunity for us,” Hinrichs said of the new variations of the large SUVs.
