GM Acquiring Ford Research Paper Example | Topics and Well Written Essays - 500 words - 1

GM Acquiring Ford - Research Paper Example For the year 2011, Ford Corporation had contracted $714 million of committed unsecured credit facilities with financial institutions due in 2014, as well as $7.9 billion of contractually-committed liquidity facilities provided by banks, from which $4.3 mature in 2012, and the rest in 2014. Ford Corporation classifies its long-term debt on the two sectors i.e. financial services and automotive sector. An overview of the amount registered for debt and long-term commitments is provided in the following tables. Taking into account that debt securities register the higher amount of the financial services debt, it is important to analyze the maturity structure of the debentures. The figure no. 1 depicts the term structure of these debentures. General Motors went through a process of reorganization in 2009, and liabilities from that period are still considered in the structure of GM’s debt. The following table depicts the description of debt for General Motors, considering also the amounts for Old GM. As in the case of Ford, GM classifies its long-term debt by considering the automotive and financial sector. For the automotive sector, the long-term debt registers $ 3613 million and a total of liabilities of $ 96792 million (as it can be seen long-term debt is a small portion of the total). The financial sector totals liabilities of $ 8820 million; a structure of these sector facilities is provided in the following