May 28, 2012
Ford’s iconic blue logo back where it belongs 1
Ford recently gave up the rights to their logo in order to secure loans and finances when they were experiencing trouble. Their iconic blue logo is now back with it’s rightful owner.
Ford bettering Chrysler and General Motors
During the 2008 automotive financial crisis, the likes of Chrysler and General Motors needed Government bailouts. Ford managed to avoid such action and came out on top, with less damaged against the company.
Ford assets sold
Actions such as selling their intellectual property have clearly paid dividends in 2006. Ford managed to secure $23.5 billion in loans thanks to pledging trademarks on their company logo, the F-150 truck as well as the Ford Mustang.
Ford’s credit rating
Ford’s Moody Credit score is now rated at Baa3 from Ba2. The Senior Vice President of Ford, Bruce Clark said “The key factor in our considering an investment-grade rating for Ford was whether or not the company would be able to sustain its strong performance. We concluded that the improvements Ford has made are likely to be lasting.” Alan Mulally said that the news will lower the costs of Ford’s repayments. This follows an upgrade from Fitch last month.
Back in 2005 Ford’s Moody rating was labelled as junk in 2005 thanks to a huge decrease in demand for trucks as well as sports utility vehicles. A sharp rise in petrol prices was also to blame.
Ford has experienced a great deal of restructuring in recent times since Alan Mulally has taken over the reins. This includes a great deal of cost cutting, implementing new worldwide and local strategies and implementing new policies for labour.
For the 12th quarter in a row, Ford has managed to secure profit. Dividend payments were paid out in March of this year, making it the first time in 5 years that such an event has occurred. Debts and potential closures seem like a very long time ago.
It may sound strange that Ford gave up the rights to their Blue Oval logo but that was the level of debt that the company were experiencing at the time. We believe after regaining the rights to their famous logo, a situation like this will not occur again.