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Ford Welcomes Investor
05/09/08 MRC/CJ
Ford Motor Company welcomed a significant investment by
billionaire Kirk Kerkorian and executives told
shareholders in Wilmington, Delaware that it underscored
the strength of turnaround plans for the second largest
American car company.
Executives said their work to return Ford to profitability
by 2009 was taking hold, just over a week after
Kerkorian’s Tracinda Corporation said it had acquired a
4.7 percent stake in the company.
Kerkorian has held significant ownership stakes in General
Motors and Chrysler, where he advocated for changes. His
investment company said last week it hopes to amass a 5.6
percent stake in the automaker, expressing confidence in
Ford Chief Executive Alan Mulally’s work.
Mulally acknowledged that the slowing U.S. economy will
create challenges, but said Ford was making progress. Ford
has worked to reduce costs in North America and adjusted
production levels in response.
Ford reported losses of $2.7 billion for 2007, but turned
a surprise $100 million profit during the first quarter
this year. The company also reached a labor agreement
recently with auto workers in Canada.
Only 56 shareholders showed up in person, the lowest
attendance in several years. They raised environmental and
fiscal issues and wanted information on Ford’s dealership
network and the company’s leadership.
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