Ford is re-running its financial crisis playbook as it borrows $15.4 billion to avert the coronavirus crisis

• Ford announced it would access $15.4 billion in credit lines, adding to $20 billion cash on hand, to combat the effects of the coronavirus outbreak.
• Ford also said it would suspend its quarterly dividend, which has been the highest in the auto industry.
• A day earlier, Ford said it would shut down manufacturing at its plants in North America and Europe.
• Visit Business Insider's homepage for more stories.

On Thursday, Ford announced that it would tap $15.4 billion in credit lines, adding to $20 billion in cash on its balance sheet to weather the coronavirus pandemic.

The level of borrowing is reminiscent of the carmaker's actions prior to the financial crisis, when it effectively mortgaged all its assets to borrow $24 billion, averting the bankruptcies that General Motors an Chrysler endured.

"Like we did in the Great Recession, Ford is managing through the coronavirus crisis in a way that safeguards our business, our workforce, our customers and our dealers during this vital period," CEO Jim Hackett said in a statement.

"As America's largest producer of vehicles and largest employer of autoworkers, we plan to emerge from this crisis as a stronger company that can be an engine for the recovery of the economy moving forward."

At the end of 2019, Ford said in had $35 billion in total balance-sheet liquidity.

On Wednesday, Ford announced that it would shut down production in North America; earlier, the automaker said it was shutting down its European plants.

Suspending the dividend and extending support to customers

Ford said it would access two lines of credit: a "$13.4 billion under its corporate credit facility and $2 billion under its supplemental credit facility."

The company also said it was suspending its quarterly dividend and withdrawing previous guidance for financial performance. It added that it would update markets when it reports first-quarter earnings on April 24.

At 6.5%, Ford's dividend yield was the highest in the auto industry, offsetting a stock price that had declined substantially against broader markets before the coronavirus crisis.

In addition, Ford rolled out a program, "Build to Lend a Hand," to provide customers with vehicle-payment relief for up to six months.

"Under the new program, developed with its dealers, Ford is offering six months of payment relief for eligible new-car customers who finance their purchases through Ford Credit," the company said.

"Ford will pay for three months and customers can defer for up to three more for a total of six months. The program is for people purchasing 2019 and 2020 model-year vehicles, excluding 2020 Super Duty trucks."

The program expands on measures previously announced by Ford Credit.