Ford Canada not looking to draw credit line

Ford Motor Co's Canadian subsidiary has ample liquidity and has no plans to access the line of credit it has arranged with the Canadian government, the unit's president and chief executive announced this weekend. "Our liquidity is strong, our share is up on a quarter over quarter basis and our lineup has never been better," said David Mondragon, who took over the top post at Ford's Canadian arm on Sept. 1.

Ford has secured a line of credit with the governments of Canada and the province of Ontario to be used if market conditions worsen. Ford is also seeking a parallel $9-billion letter of credit from the U.S. government that it could use if the U.S. auto market weakens beyond its expectations in 2009.

The Canadian arms of the Detroit Three - Ford, Chrysler LLC and General Motors Corp are together eligible for short-term loans of up to C$4 billion to help keep them alive while they restructure their businesses.

[Source: Reuters]