Ford Motor Seeks to Raise Money to Invest in New Technologies

By Christina Rogers 

Ford Motor Co. is seeking to raise about $2 billion in new long-term financing for the automotive business, as the company tapped debt markets for the first time in nearly four years to fund a core auto-making operation looking to invest in new technologies.

The No. 2 U.S. auto maker which disclosed the debt issuance in a regulatory filing Monday and said it would take advantage of favorable market conditions to raise money for "general corporate purposes." The last time Ford issued new automotive debt was in January 2013, when it raised $2 billion in 30-year notes at 4.75%.

The move comes after several years of banking big profits on increasing sales of trucks and sport utilities. The company has signaled it expects increased pressure as the U.S. light-vehicle market plateaus, regulatory costs increase and the race to make cars more autonomous heats up.

"Consistent with our recent investor day presentations, we continue to increase on investments in emerging opportunities, primarily in the areas of electrification, autonomy and mobility," the company said in a statement.

Ford is moving to diversify its operations beyond its core business of building and selling cars, moving into new areas, such as ride-hailing and autonomous vehicles.

The Dearborn, Mich., auto maker's capital spending is expected to rise to 5.6% of revenue in the next two years from 4.9% in 2016, as Ford steps up investment and acquisitions related to new businesses.

Write to Christina Rogers at [e-mail]

(END) Dow Jones Newswires

December 05, 2016 12:05 ET (17:05 GMT)

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