Ford Motor Company is planning to raise a sum of $2.8 billion in long-term debt in order to fund investments into emerging technologies, according to Reuters. Ford President of the Americas Joe Hinrichs says the list of technologies the automaker is looking to commit more support to includes autonomy, drivetrain electrification, and mobility services such as ride-sharing and ride-hailing.
“It’s an opportunistic time,” Hinrichs says. “It’s a supportive marketplace for long-term debt given where rates are, and we want to make sure that throughout the cycle of the industry we have the flexibility to do what we need to do and want to do, especially in the emerging part of the business.”
Ford has already filed with the Securities and Exchange Commission (SEC), seeking $1.5 billion in 10-year notes with a yield of 4.356 percent and $1.3 billion of 30-year notes at 5.291 percent. Automotive News says this is the first time in almost four years that Ford has sought to grow its automotive debt.
Last December, Ford announced plans to invest some $4.5 billion by 2020 into growing its portfolio of electrified vehicles – including conventional hybrids, plugins, and battery-electric vehicles. The automaker has also made clear its commitment to autonomous technology, and what it calls “Smart Mobility” – an umbrella term to describe new opportunities in providing transportation services – with a slew of new investments in tech firms and a plan to double its Silicon Valley staff.