Top Ford executive says Dec. sales faring well

[December 17, 2008]  DEARBORN, Mich. (AP) -- Ford Motor Co.'s December sales are faring well, at least through the first two weeks of the month, Executive Chairman Bill Ford Jr. said Tuesday.

Ford, speaking to reporters in Dearborn at an event to preview new models, said a lot will depend on the last week of the month, traditionally the biggest sales week in December because people are off work for the holidays.

"December for us is turning out relatively well," Ford said. "So far it doesn't look so bad."

Ford sales slid 31 percent in November when compared with the same month last year, and they're off almost 20 percent for the first 11 months of the year. The entire U.S. auto industry is down 16 percent for the year.

Ford says if General Motors Corp. and Chrysler LLC get the loans from Washington that they have requested to stay in business, it would help Ford by stabilizing parts supply companies.

So far, suppliers have yet to demand payments from Ford, said CEO Alan Mulally. Last week, Chrysler said some of its suppliers threatened to stop shipping to the cash-strapped automakers.

"We have very positive relationships with our suppliers, these are long-term relationships. It's not like you'd put pressure on each other," Mulally said in a separate interview Tuesday. "It might be the fact that we are in a different place, it gives a lot of confidence that we're going to be OK."

The Bush administration is considering loans from the $700 billion Wall Street bailout fund or from the Federal Reserve for GM and Chrysler. Ford says it has enough money to make it through 2009.

Mulally said Ford is continuing to communicate with all government leaders involved in making the loan money available.

"I think the President and Congress really do understand the importance of the auto industry," he said.

Ford would like a credit line of $9 billion from the government but does not intend to use it. The company borrowed or set up $23.5 billion in credit lines in 2006 and 2007 to prepare for an economic downturn.

The Bush administration is studying the automakers' books and coming up with guidelines before granting the loans, and the president has said an abrupt bankruptcy of an automaker could be devastating to the economy. GM and Chrysler have said they will run out of money early next year without government assistance.

U.S. Sen. Carl Levin, D-Mich., said Monday he expects GM to get $8 billion in loans and Chrysler $7 billion. He said he expects Bush to follow the terms of a deal with Congressional leaders he agreed to earlier this month.

Ford has already sold some of its non-Ford brands such as Jaguar, Land Rover and Aston Martin. Ford is studying the sale of Sweden-based Volvo.

"We're finding out how good a brand it is," Mulally said, declining to offer details of talks to offload the unit.

Ford shares slipped 5 cents to $3.13 Tuesday.

[Associated Press]

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