Ford regained control of its logo, after it was mortgaged for 6 years, together with other assets in an attempt to avoid bankruptcy.
“This is one of the best days that I can remember,” Bill Ford said, on a conference call with reporters to celebrate the return of the assets. “This is enormously emotional for me personally and for my family.”
This only means that the Detroit car maker is back on the track, with the highest first quarter profit since 2000. Ford had pledged to its lenders in a ground-breaking financial deal in 2006, pledge which provided $2.35bn (£1.49bn) in new loans, in the last minute before credit markets froze and the U.S. market fell into recession. Until 2006 Ford survived only by means of loans, while Chrysler and GM went bankrupt being saved by the US government.
Besides the blue oval logo, other pledged assets included factories and trademarks of the well-known F-150 pick-up truck and Mustang sports car. The risk of losing them made the company cut costs to bring business back on track.
Bruce Clark, senior vice president at Moody’s, said: “The key factor in our considering an investment-grade rating for Ford was whether or not the company would be able to sustain its strong performance. We concluded that the improvements Ford has made are likely to be lasting.”