Ford can weather economic downturn: CEO

AP - Ford Motor Co has sufficient liquidity to weather an economic downturn, even if the US economy worsens this year, chief executive Alan Mulally says.

Mulally said the automaker initially believed it would need $US17 billion ($A19.78 billion) for restructuring and to cover losses, but was able to raise $US23 billion ($A26.76 billion), giving it enough of a cushion.

Mulally said he doesn't know if he had enough time to fix Ford, although he was confident in its restructuring plan that called for a return to profitability in 2009.

"The plan we put in place is absolutely the right plan," he said during an appearance at the Automotive News World Congress in Detroit. "We're going to create an exciting and viable company."

Mulally called the US Federal Reserve's three-quarters of a percentage point cut in the federal funds rate a decisive and positive action.

"I think that it's going to be a positive," he said. "But I also like the continued dialogue to work all of the pieces in the economy because there's just a lot of elements that can be worked. But to move decisively like this, I think is a very positive thing for all of us."

The surprise reduction in the federal funds rate from 4.25 down to 3.5 per cent marked the biggest funds rate cut on record going back to 1990.

Also during the speech, Mulally said a new Ford Taurus, once the best-selling car in the US, was coming in 2009, although when asked about it later he said: "I probably said too much."