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.
