The Ford CEO Allan Mulally said that the company is now burning less cash than what it did in the last quarter. The auto maker has burnt 3.7 billion US dollars in the first three months of 2009, which is far lower than the 7,2 billion it burnt in the last quarter of 2008.
He was also confident that going forward, it will be able to reduce the cash burn on a quarterly basis. Whether the company will be able to start making profits at least by 2011 is a billion dollar question.
In the coming weeks, the company is expected to work for a major debt reduction either through negotiated swap with the creditors and also the GM workers union, or by going in for government administered bankruptcy.
Few of the major creditors are said to be insisting on bankruptcy filing since they have credit default swap cover.