Ford's Big Liability Could Be Shrinking

Many Ford fans tend to focus more on the company's new models and sales results than they do on the sometimes-arcane financial challenges of running a giant global business. Those things are important, but, for investors, the numbers matter a lot -- and one number that has worried many investors is the size of Ford's pension liability.

The hot-selling Fusion Hybrid sedan is important to Ford's financial success, but this pension issue might be even more important to the price of Ford's stock. Photo credit: Ford Motor Co.

Ford's old pension plans lost ground in the wake of the economic crisis, and many big investors have worried that Ford might be forced to add billions of dollars to keep them going -- a move that could drain the company's coffers and expose it to big trouble in the next recession.

But lately, it's looking more and more like those worries are unfounded. In this video, Fool contributor John Rosevear explains the concern, why things have improved, and why all Ford investors should be paying close attention to this issue over the next year or two.

A neat resolution to the pension issue could give Ford's stock a big boost. But in order for Ford's stock to really soar, a few more critical things need to fall into place. In The Motley Fool's special free report entitled, "5 Secrets to Ford's Future" we outline all of the key factors every Ford investor needs to watch. Just click here now for your free report.

The article Ford's Big Liability Could Be Shrinking originally appeared on Fool.com.

Fool contributor John Rosevear owns shares of Ford and General Motors. You can connect with him on Twitter at @jrosevear. The Motley Fool recommend General Motors. It recommends and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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