Ford to sell more shares, screw shareholders

Ford Motor Co. said Friday it will sell $500 million in common stock to pay off debt at its financing arm, according to a regulatory filing.

The Dearborn, Mich.-based automaker said in a filing with the Securities and Exchange Commission that it will sell the shares from time to time, then use the proceeds to buy Ford Motor Credit LLC outstanding debt securities in the open market or privately negotiated deals. Ford Motor Credit has struggled in recent months, taking a $2.1 billion charge during the second quarter related to the drop in used vehicle prices.

The move also further dilutes Ford stock at a time when its price is already near record lows. As of July 29, the company had roughly 2.19 billion common shares outstanding, according to a filing with the SEC. Ford shares have dropped 24 percent in the last year.

Goldman, Sachs & Co. will handle the sale, Ford said. Ford shares rose 1 cent to finish Friday at $5.11.