New York - Ford Motor Company said Monday it had trimmed its debts by 38 per cent in a massive effort to keep the car maker from seeking government aid to survive.

Ford, the only US carmaker not to have received government funds, has reduced its debt by 9.9 billion dollars through agreements with creditors. It offered last month to pay creditors discounted amounts using 2.4 billion dollars in cash and 468 million shares of stock.

The debt reduction will save Ford 500 million dollars in interest each year, the company said.

The company was 26 billion dollars in debt at the end of last year, and had losses of 30 billion dollars.

US competitors General Motors Corp and Chrysler LLC received emergency government loans totalling 17.5 billion dollars and are undergoing mandatory restructuring. Ford has attempted to avoid resorting to government aid amid the ongoing recession and declining demand for US-made cars.