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Ford lost $1.9 billion in the second quarter, or $3 billion less than expected
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Ford lost $1.9 billion in the second quarter, or $3 billion less than expected

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Ford lost $1.9 billion in the second quarter, or $3 billion less than expected

Ford headquarters of Dearborn, Michigan are pictured.

Ford didn't suffer as bad a loss as expected during the second quarter, when the coronavirus shut down its factories, including the Chicago Assembly Plant and Chicago Stamping Plant.

The Dearborn, Michigan-based automaker posted a loss of $1.9 billion, which was $3 billion better than expected.

“I could not be prouder of the Ford team’s optimism and effectiveness as we manage through this pandemic,” Ford President and CEO Jim Hackett said. “We delivered a strong second quarter while keeping each other safe, caring for customers and neighbors, and assuring tomorrow.”

The automaker, which has since resumed full production around-the-clock at its plants with new coronavirus safeguards, has $39 billion in cash and just repaid $7.7 billion in revolving credit loans. The bank has $40 billion in liquidity and expects to maintain a cash balance of $20 billion through the second half of the year, even if demand falls or a second wave of the pandemic forces plants to close again. 

Ford is optimistic business will pick up as it launches a new F-150, Mustang Mach-E BEV and the reborn Bronco.

“Our global team is delivering great value for customers, performing strongly and advancing the business against extraordinary headwinds,” Ford CFO Tim Stone said. “You’re seeing us fix things that held us back in the past, accelerate in areas like commercial vehicles and SUVs, and set ourselves up for growth in connectivity, electrification and autonomous vehicles.”

During the pandemic, Ford also has produced more than 18 million face shields, 33 million face masks, 32,000 air-purifying respirators, 1.4 million washable isolation gowns, and 7,500 ambulances. It expects to have made 50,000 patient ventilators by the end of August.

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Business Reporter

Joseph S. Pete is a Lisagor Award-winning business reporter who covers steel, industry, unions, the ports, retail, banking and more. The Indiana University grad has been with The Times since 2013 and blogs about craft beer, culture and the military.

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