WHEN: TODAY, TUESDAY, JULY 26, 2011
WHERE: CNBC'S "THE STRATEGY SESSION"
Following is an excerpt from the unofficial transcript of a FIRST ON CNBC interview with Alan Mulally, President & CEO, Ford Motor Company, live from Ford headquarters in Dearborn, Michigan today on CNBC's "The Strategy Session." All references must be sourced to CNBC.
The full interview is available on CNBC.com: http://video.cnbc.com/gallery/?video=3000035184
Mulally on Game Plan In Terms of Cash:
PHIL LEBEAU: I WANT TO ASK YOU ABOUT YOUR CONTINGENCY RESERVES IN TERMS OF CASH. YOU ARE NOW BUILDING UP WHERE YOUR AUTOMOTIVE CASH IS $8 BILLION GREATER THAN YOUR DEBTS.
ALAN MULALLY: EXACTLY.
LEBEAU: AND AS YOU CONTINUE TO GROW THIS, THERE ARE QUESTIONS ON WALL STREET ABOUT WHAT DO YOU DO WITH THIS CASH. AT SOME POINT, DO YOU HAVE A GAME PLAN IN TERMS OF HOW TO PUT THAT CASH TO USE?
MULALLY: YES, WE HAVE. IT'S REALLY IMPORTANT ABOUT THE LIQUIDITY. AS YOU POINTED OUT, LIQUIDITY IS SO IMPORTANT, ESPECIALLY WITH THE VOLATILITY OF THE WORLD ECONOMIES AND WHAT WE'VE BEEN THROUGH. SO WE HAVE NEARLY $30 BILLION IN TOTAL LIQUIDITY, ALMOST $22 BILLION IN CASH. NOW OUR PLAN IS THAT -- IS TO CONTINUE TO IMPROVE OUR BALANCE SHEET. WE ALSO NOTE TODAY THAT WE HAVE REPAID $2.6 BILLION OF THE LOANS. WE ARE DOWN TO $14 BILLION NOW. OUR GOAL IS $10 BILLION FOR OUR NEW BALANCE SHEET.
LEBEAU: AND WHEN YOU GET THERE, WHAT DO YOU DO?
MULALLY: THEN THE NEXT STEP IS THEN WE'LL BE MOVING TO INVESTMENT GRADE, BASED ON THE STRENGTH OF OUR BUSINESS. THEN WE ARE GOING TO REINSTATE THE DIVIDEND. AND SHARE WITH THE SHAREHOLDERS OUR PROFITABLE GROWTH ALSO. BUT THE MOST IMPORTANT THING IS WE'RE GOING TO USE THAT CASH TO CONTINUE TO GROW THE BUSINESS MAKING THE BEST CARS AND TRUCKS IN THE WORLD WORLDWIDE.
LEBEAU: AND PAY A DIVIDEND.
MULALLY: AND PAY A DIVIDEND.
LEBEAU: THERE YOU GO. ALAN MULALLY, FIRST ON CNBC, ON A DAY WHEN THE COMPANY BEAT THE STREET BY 5 CENTS. GARY AND DAVID, ILL SEND IT BACK TO YOU.
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