Cash Cow: Ford to pay some suppliers early 

Toronto, Ontario ⁠— Ford is helping some of its suppliers survive a cash crunch by paying its bills early.

The company is aiming cash-strapped parts makers have access to cash flow and working capital as production restarts across North America.

Ford restarted most of its U.S. factories on May 18 after a two-month shutdown amid the pandemic. The shutdown is predicted to have cost Ford more than $10 billion.

The company already burned through US$8 billion in the first quarter of 2020 but has accumulated a substantial pile of cash by suspending dividends, drawing down credit lines and selling junk bonds.

Ford said it is making early payments to a small group of key suppliers it has yet to identify. It plans to eventually expand the program to other manufacturers across its supply base.

Ford is expected to post a US$5 billion loss for the second quarter.

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