Ford Motor Co. will raise $ 2.8 billion in new long-term financing for its automotive business, tapping debt markets for the first time in nearly four years to fund investment in new technologies.
The No. 2 U.S. auto maker disclosed the debt issuance in a regulatory filing Monday and said it would take advantage of favorable market conditions to raise money for “general corporate purposes.”
The move comes after several years of banking big profits on increasing sales of trucks and sport utilities. The company has signaled it expects increased pressure as the U.S. light-vehicle market plateaus, regulatory costs increase and the race to make cars more autonomous heats up.
Once awash in debt, Ford F, +1.63% paid down its obligations in the years following the financial crisis to revitalize its balance sheet. General Motors Co. GM, -0.26% and Chrysler, now part of Fiat Chrysler Automobiles NV FCAU, +6.29% , filed for bankruptcy in 2009 to erase billions of dollars in debt.
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