Ford agrees to sell service contract business
From Bloomberg News
Ford Motor Co., seeking to raise cash after a $12.7-billion loss last year, agreed to sell its auto service contract unit to a private equity fund.
Ford’s Automobile Protection Corp. will be bought by Trident IV, a fund managed by Stone Point Capital, the automaker said. Automobile Protection sells extended warranties and service contracts to buyers of new and used vehicles. Terms weren’t disclosed.
The plan follows through on a pledge Ford made this week to sell Automobile Protection and the Aston Martin luxury-car unit by midyear. Ford expects to burn through $17 billion in cash through 2009 as it tries to restore profit.
