When the Covid-19 pandemic hit in 2020, Ford Motor Company was in the midst of a major strategic transition. The company was redesigning its product lineup to feature more electric vehicles (EVs), such as the Mustang Mach-E and F-150 Lightning, as well as hybrids like the Maverick pickup and Escape SUV. Ford was also working on introducing a modern version of a beloved classic, the Bronco.
"We were redesigning our business and restructuring automotive operations around the world," explains Dave Webb, vice president and treasurer of Ford. "At the start of 2020, we were making progress toward our electrification strategy. The future looked bright." That outlook dimmed a bit as the pandemic led Ford to suspend vehicle production around the world.
"In mid-March, production came to an immediate standstill," Webb says. "So did revenues and cash flows associated with that production. There were a lot of unknowns, including when we would be able to get workers back on manufacturing floors to resume production. Shortly after we shut down our facilities, the ratings agencies downgraded Ford to below-investment-grade."
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Meg Waters
Meg Waters is the editor in chief of Treasury & Risk. She is the former editor in chief of BPM Magazine and the former managing editor of Business Finance.
