Ford admits need to borrow $18bn

Ford's US sales have been flagging

Struggling US carmaker Ford has seen its shares fall 4% after it unveiled plans to borrow $18bn (£9.3bn).

The company said it needed the extra cash to help pay for its ongoing efforts to restructure its North American operations.

Analysts said the move highlighted Ford's worsening financial condition and the carmaker's already weak credit rating was cut even further.

Ford recently announced a 30-fold rise in quarterly losses to $5.8bn (£3bn).

Collateral

The second-largest US carmaker, Ford is struggling against falling sales in its home market, a situation also affecting its main domestic rivals General Motors and Chrysler.

Ford admitted it was using its US plants as collateral for the latest loans.

It also said the extra money would help it address "near- and medium-term negative operating-related cash flow".

Ford said it hoped to have the financing secured before 31 December.