Ford Says Government Backed Debt For GMAC Is Unfair

Ford has been learning the danger of being a relatively successful company in the age of bailouts: higher borrowing costs.

The Associated Press breaks down the numbers:

  • GMAC, 9.9 per cent owned by GM and lender to its dealers and buyers, sold $3.5 billion of 2.2 per cent three-and-a-half year notes on June 3 guaranteed by the Federal Deposit Insurance Corp. priced at 99.841 cents on the dollar to yield 2.25 per cent.
  • Ford issued $1.1 billion of five-year 8 per cent notes May 28, priced at 82.036 cents on the dollar to yield 13 per cent. Paying a higher yield boosts Ford’s borrowing costs.

 

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