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The Honolulu Advertiser
Posted on: Saturday, April 25, 2009

Ford's 1st-quarter loss less than was expected

Associated Press

DEARBORN, Mich. — Better-than-expected earnings from Ford raised hopes yesterday that the automaker's restructuring and new products may be enough to spare it from a federal bailout, while General Motors received more government help and Chrysler raced to avoid bankruptcy.

Ford still lost $1.4 billion from January through March, but that was less than expected, and executives said the outlook for future sales was good enough to increase production of its most popular vehicles.

While Ford tries to go it alone, federal officials are questioning every penny spent by General Motors Corp. and Chrysler LLC, which are both subsisting on government loans.

Yesterday, the Treasury Department said it loaned $2 billion to GM, bringing the automaker's total to $15.4 billion.

Chrysler has borrowed $4 billion and could get $500 million more so it can keep running while it restructures.

With a government-imposed deadline for massive restructuring less than a week away, Chrysler and federal officials held out hope that they could keep the automaker out of bankruptcy court, according to two people briefed on the talks.