In its annual report to the US Securities and Exchange Commission, Ford Motor Company has confirmed that it will be reducing its stockpile of the precious metal palladium, following a substantial decline in world prices.
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The vehicle manufacturer lost $US1 billion last year on its stock of palladium, which is used in catalytic converters. Its value has dropped by almost 75 percent in the past few months.
“We have accordingly revised our stocking requirements and are in the process of reducing metals that are in excess of those stocking requirements,” the company said in its regulatory brief.
Buyers had failed to sufficiently hedge against risk when buying in the notoriously volatile palladium market.
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