Ford Motor Co said yesterday that it was seeking financing of US$18 billion to help fund its restructuring program and address "near-and-medium-term negative operation-related cash flow."

The financing, with its domestic plants and other automotive assets used as collateral, will also help protect against a recession or other unanticipated events, the world's second- largest auto maker said in a statement.

It hopes to have secured the financing, with the help of major banks, before Dec. 31.
Ford, which posted a third-quarter loss of US$5.2 billion, is trying to slash its operation costs and stem off intense competition led by Japanese automakers such as Toyota.

The US auto maker said that it was offering liens on its principal domestic manufacturing plants and all of its other domestic automotive assets, as well as certain intellectual property, as security for the borrowings.

It was the first time the company had used assets such as plants to secure financing, according to Ford spokeswoman Becky Sanch.

Under Ford's restructuring program, 16 plants across North America will be closed and 45,000 jobs will be eliminated by 2008.