(February 12, 2011) DETROIT — Ford announced plans this week to reduce its corporate debt levels by another $3 billion with the planned redemption or conversion of preferred securities.

The redemption of the convertible debentures will cut Ford's debt from $19.1 billion at the end of 2010 to near $16 billion.

Ford ended 2009 with $33.6 billion in debt. Ford borrowed more than $23 billion in late 2006 to support a restructuring led by Chief Executive Alan Mulally.

The move — the latest in a series of similar measures -- will also reduce Ford's annual interest costs by $190 million and result in a $60 million charge during the first quarter, the company said.

The $3 billion reduction follows $14.5 billion in debt reductions accomplished by the automaker in 2010.

Ford lost its investment-grade ratings in 2005 as rising gasoline prices and falling truck sales led to $30 billion in losses from 2006 through 2008. The automaker earned $6.56 billion in 2010, the most since 1999.

Ford also is striving to level the playing field with General Motors Co. and Chrysler Group LLC, both of which used bankruptcy to shed debt, as the three head into labor talks with the United Auto Workers later this year.