It's still losing money, but Ford Motor Co. is able to raise cash on the equity market.
On Tuesday, May 13, Ford said it had raised $1.4 billion through a 300 million-share offer at $4.75 a share. Ford CEO Alan Mulally called it an important step toward getting profitable again, according to Reuters.
Ford said the proceeds would be used for general corporate purposes, including to fund a portion of the automaker's obligation to the UAW Voluntary Employees' Beneficiary Association, a union-run fund set up for retiree health care expenses.
Selling the stock "is another key step in our plan to transform Ford into an exciting, viable enterprise poised to return to profitability," Mulally said in a statement.
Issuing equity now and possibly funding a larger portion of its retiree obligations with cash would help Ford improve its balance sheet and reduce the potential impact of those obligations on its shareholders, Mulally said.
Ford is the only U.S. automaker that has not sought government aid.