Ford Motor Co. (NYSE: F) won approval of a $250 million working capital and loan guarantee from the Export-Import Bank of the United States. The newly approved loan facility will finance approximately $3.1 billion worth of export sales across more than 200,000 vehicles to Canada and Mexico, according to a report from Zacks.
Using the guarantee, Ford plans to export several models including the Explorer, Escape, Expedition, E-Series Van, Focus, Ford F-150, Lincoln MKS, Navigator and Taurus.
Zacks said that the actual finance will be provided by the Private Export Funding Corporation, an organization tasked with providing financial assistance to U.S. exports. Ford will be required to pay off the loan amount along with interest and fees in the span of one year.
The ratings firm also said that about 650 direct suppliers and about 1,000 indirect suppliers of Ford will benefit from the loan gurantee.
Zacks reiterad a “strong buy” rating on shares of Ford Motor Co. (NYSE: F) in the short term and a long term rating of “outperform.
Ford Motor Company (Ford) is a producer of cars and trucks. Ford and its subsidiaries also engage in other businesses, including financing vehicles. It operates under two segments: Automotive and Financial Services. The Automotive segment includes the operations of Ford North America, Ford South America, Ford Europe, Ford Asia Pacific Africa and Volvo. The Financial services include the operations of Ford Motor Credit Company and Other Financial Services. In August 2010, the Company completed the sale of its Swedish Volvo Car unit and related assets to China’s Zhejiang Geely Holding Group Co.
Shares of Ford Motor Co. (NYSE: F) traded down 1.88% hitting $12.81 during mid-day trading on Tuesday.
