The ratings on Ford Motor Co. reflect the company's mounting cash outflows in its North American automotive operations, caused by sharply lower U.S. sales and the dramatic shift in demand away from large pickup trucks and SUVs. The cash outflows will reduce the company's currently ample liquidity over 2008 and 2009 and leave it more vulnerable to further deterioration in industry, economic, and credit market conditions. We estimate Ford will use as much as $12 billion to $13 billion in its global automotive operations this year, including cash restructuring costs. Of that amount, Ford used $4.9 billion in the first six months of 2008, but industry sales, including those of pickups and SUVs, have continued to weaken as the year
