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Lack of federal funds to give Ford “an advantage” over the competition

06/15/2009, 5:28 PM

By Drew Johnson

Some industry analysts have speculated that bankruptcies at Chrysler and General Motors could give the Michigan automakers an advantage over cross-town rival Ford – as they will be able to shed mountains of debt and liabilities – but Ford executive chairman Bill Ford says the company will be better positioned for future success than its Detroit rivals because of its lack of government intervention.

Ford made his comments today at the National Summit in Detroit. “We don’t know what the implications are going to be, but one thing is for sure: I like our position,” Ford told Automotive News.

“We can make quick decisions, we can make the long-term decisions and we can continue to work the plan we have in place with no distraction.” Ford added the lack of government intervention will give the Blue Oval “an advantage” over the competition.

Although Ford is happy with his company’s decision not to take government loans, he’s grateful the federal government stepped in to prevent the imminent collapse of Chrysler and GM. Ford said an unsupervised bankruptcy at either automaker would have spiraled in to a “catastrophic” failure at the supplier level, leaving the entire U.S. auto industry crippled.

Ford has lost about $30 billion over the last three years but expects to return to profitability by 2011.

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06/15, 5:35 PM

posted by:

Dr. Lincoln

Bill Ford doesn’t know S#*T that is why he’s out. If Ford can hold put while Chairman Obama buys up everything…Then he will have an advantage, but that is four or eight years away.

06/15, 5:43 PM

posted by:

mayer_ray_nagin

I for a fact will not buy a GM or Chrysler now that doing so is aiding and abetting in the crime of theft and forceful wealth redistribution for political cronyism. And that’s too bad because I liked some GMs that were developed before Mao-bama stole the corp, but now the only domestic brand that even has a chance with anyone who respect rule of law and business principle is Ford.

06/15, 6:01 PM

posted by:

tripleonefive

I agree, now just stop lying in your commercials claiming to have quality on par with Honda or Toyota

06/15, 6:03 PM

posted by:

idrinorbarsaku

They sure do have an advantage! It is pretty simple, Chrysler and GM went bankrupt, Ford didn’t!! Nough said!! GO FORD!!!

06/15, 6:22 PM

posted by:

Payton Byrd

@1115

You’re an idiot. Do some research. Ford’s quality is one point behind Toyota and better than Honda.

06/15, 6:41 PM

posted by:

jayjc08

Mayer- Ditto. GM and Chrysler are now tools.

06/15, 6:45 PM

posted by:

StepAhead

@ mayer_ray_nagin

Those of you who support the views of “mayer_ray_nagin” stop and think what would of happened to the
US car industry if GM – Chrysler went under which would of serverly damage the supplier companies and local economies. All the Competitors including the Japanese makers in th US have supported the moves of the US government to help maintain the car industry in the US, so stop complaining!!

06/15, 6:46 PM

posted by:

idrinorbarsaku

the government took over gm and chrysler not because they are doomed, but to stop people like lutz from running a company for money reasons. They want to decrease the amount of the “power elite” because if more of them arise, the government will loose all power!

06/15, 7:01 PM

posted by:

Fleming in Tennessee

If Obama doesn’t stop gas prices from ramping up, the auto recovery will be stalled big time, effecting the general recovery. During the campaign Obama said he would not allow speculators to push up oil prices, now is the time to act.

06/15, 7:02 PM

posted by:

carstuff

id, you are still speaking idiot phrases. The government did not want to loan/buy into either company. They did it to keep them afloat because if either went under we would all be losing our jobs and into a depression probably as bad as the 30’s. No one in government would want that to happen under their watch.

Ford is trying to talk a good game but they are in big trouble now. Not profitable until 2011? GM will be profitable next year. Ford is losing out on all the legacy cost cutting and everything else that bankruptcy is allowing GM/Chrysler to accomplish.

The only advantage Ford possibly has is that some buyers may not buy GM/Chrysler products because either they are owned by the government OR to show Obama they do not support him.

BUT last month Chrysler did pretty good, so so far it looks like all the hyperbole is just that. We will have to wait and see.

06/15, 7:32 PM

posted by:

idrinorbarsaku

carstuff, the US isn’t as black and white as you see it to be!

06/15, 7:43 PM

posted by:

DrFill

Many Tings!
Ford, being the incompetent company that it has been during my lifetime, needs help, and that’s why they got private;y replenished before this downturn
I guess they want a pat on the back for holding their debt privately and for losing how much?

“Uh that was…. about $30 billion over the last three years”

Thank you.

Their lineup is one steaming pile after another, and if Honda ever made a small pickup, they’d pass Ford into 4th place domestically

There are a lot of dopes who I guess wanted Obama to let GM and Chrysler to die in a flaming wreck, and take down every supplier, and the rest of the auto industry with them. Fortunately, these people are under house arrest, and are blacklisted from voting in any US precinct

Ford is like roaches. They don’t improve. They don’t die. They just are. Their market share is virtually the same as it was 30 years ago. And their lineup might as well be 30 years old, most of their engines are anyway.

Ford may have figured out how to actaully build the same sorry designs that are now 10 years old (Exploder, Focus, Ranger, etc), but eventually, Ford will offer new engines and designs in their generational lineup update, and Ford’s true quality will nestle back to slightly below average, as is their custom.

Update your lineup more than once a decade, give me more than 1-2 years of good quality scores, actually build something that someone who isn’t a drooling idiot would buy over the competition, then we can discuss your viability as a major player

I’d call Ford an underachiever, but that would imply they have potential.

Now is not the time to sing Ford’s virtues.

They are losing money hand over fist, and they don’t have any share left to lose.
DrFill

06/15, 8:05 PM

posted by:

StepAhead

@ carstuff
True words!!

06/15, 8:16 PM

posted by:

rollercoaster5

I just cannot wait for someone to say”FORD is being selfish” , they have an ufair advantage over tthe other companies so they should be forced to sell their product at a higher price in order for
GM and Chrysler to compete with their “Crappy Ass” product.
I am about to rush out now and buy a Goverment Motors Trabant. You know with some luck it just might make home to driveway where I will boast of my support for a failed enterprise and a failed goverment.

I am moving to Texas, so when Rick Perry secedes I will be on the right side of border.

06/15, 9:20 PM

posted by:

spg900

I am assuming that the vast majority of posters on this site are American. I can’t believe how many of you idiots seem to believe that one man (Obama) wakes up one morning and decides on a whim which direction the country will go today. It’s called a GOVERNMENT. It involves many, many people as well as other factors around the world . I know it’s hard to believe that the rest of the world can affect your country…but they can.
As for drFill , I guess no one (or company) can ever change.

06/15, 9:31 PM

posted by:

johnnycanuck

So what’s the population of North America (US + Canada)? 340 million give or take? If even one out of a hundred good citizens think like mayer_ray that’s 3.4 million who aren’t going to be visiting their local (or not so local anymore) GM or MOPAR store anytime soon. Of course all those folks aren’t going to be in the market all at once and neither is Ford the only remaining player in the game but it is an advantage nonetheless. It may be hard to find an upside to collateral damage but if I were Ford I’d certainly be looking.

06/15, 9:41 PM

posted by:

mayer_ray_nagin

Sorry StepAhead and Carstuff, you are wrong. You make it sound like the choice was either
…. 1) complete economic collapse, or
…. 2) obama’s seizure and of corporate assets and redistributing to his constituents.
#2 is what happened along with Obama’s firing of a CEO and installing his puppets over a major segment of the economy, and that is why these corps are tools and so I won’t buy from them EVER. And if Bush did the same thing I would react the same way.

Managed bankruptcy handled by the courts according to rule of law is how it should have been done. Rule of law basically states secured bondholders have “dibbs” on the assets – not the feds, and not the UAW. Courts take their claims into account, balance it to an extent with other claims such as the UAWs and the Feds, review the resultant new corporate structure, and dish it out the goods accordingly with preference to the secured bondholders. That is why they paid a premium (in the way of lower returns) to hold secured bonds, and instead they were strongarmed and threatened ala Hugo Chavez’ style tactics to relinquish their claims for a political payoff.

In the scenario that I laid out, which is the normal scenario and happens often in business, the economy goes on and the vendors get mostly paid, but theft of assets by politicians to pay their cronies does not occur. What Obama (yes, HE and his thugs PERSONALLY) did in this scenario is tell everyone who wants to invest in this country that their assets may be robbed for Obama’s (or the next guy’s) private political obligations. That is a disincentive to investment, and if you follow business cash flows right now you’ll see it is turning against the USA in a big way. Obama’s not stupid and knows that means long-term political harm to him so he will try to kiss and make up, but it’s going to be a helluva lot harder now simply because he did not take the 3rd option and instead chose politics. That’s exactly what I would expect from someone who does not understand business, which is what he is.

06/15, 9:56 PM

posted by:

rollercoaster5

Funny…. there is a guy down in South America that conducts business in the same manner.
Chavez, yeah that’s it Chavez is his name.
” I can just take over your company for the good of the people”.

So now, instead of human beings pushing themselves and pushing each other to higher and higher goals and relishing in the accomplishment, we have industry dumbing down to the lowest common denominator.
America used to be the land of the brigthest, hardest working thinking people this palnet has ever seen.
Now we are rapidly sinking into common, below average workers, just there for check.

Well I say it’s time we all grew a Pair, and told the goverment where to get off the gravey train. It is time to throw mediocre ideas and work and return to hard working, thinking people.
I for one do not want to sit around a wait for a goverment check, a goverment car , a goverment apartment and of course my goverment issue toliet paper.
And that friends is where this is all leading, very fast.

06/15, 10:01 PM

posted by:

Borat

Lets get real: all domestic companies screwed up royally. The question is to what degree. The only reason Ford was not asking for handout, because Bill’s family wanted scion to lead the company, regardless of his mental capacity. With 5% investment Fords control 40% of the corporate vote. Going to uncle Sam for shekels would end the party. It still may come to that. Ford is far from being profitable and they do not have any line of credit outside of Treasury and they are in deep sh!t financially (debt) for a long time.

06/15, 10:05 PM

posted by:

rollercoaster5

my spelling goes out the winodw when I get wound up

06/15, 10:19 PM

posted by:

DrFill

Fords score very high in the 40-45 year old white male douche demographic
DrFill

06/15, 10:22 PM

posted by:

rollercoaster5

hell, borat…the whole damn country is in deeps sh!t financially (debt) for a very long time.
GM, Chrysler, and likely Ford are just the tip of the iceberg.
I love cars and I love my country and right now both are F##KED.

06/15, 11:12 PM

posted by:

FreezingD

He is full of crapola. Ford is in no better shape than GM or Fiayler are. At least GM has a foothold in China, the only country (well add India to that list) where there is any market for new cars. When (IF) the American car market returns, we’ll see an uptick in used car sales first, driving up the values for quality, low mileage used cars. But scratch my butt and call me Twinky the day I see Ford sell $35,000 Taurus’ in any great numbers (numbers like CamCords). Salaries for US workers have taken such a beating that I doubt we’ll ever see the D3 regain sizeable market share. Most Americans who decide they MUST have a new car will be forced to turn to cheap cheap cheap, and that means Kia or Hyundai will be gaining even more market share.

06/15, 11:16 PM

posted by:

spg900

DrFill – which demographic did you say you belong to ?

06/15, 11:35 PM

posted by:

idrinorbarsaku

Only a real hater could take the time and effort to write so much and provide little no proof of your statements. If ford is the underachiever, then what in the world would you call gm and chrysler?

06/15, 11:40 PM

posted by:

idrinorbarsaku

When time comes, many years from now, I hope ford and gm have fully recovered from this economy for the better of the US as a whole. I can only imagine that our companies will make better products because they are pretty much being forced to.

06/15, 11:41 PM

posted by:

DrFill

Read my post again
I said nothing about Ford actually underachieving
They aren’t good enuf

GM is a classic, textbook underachiever
Now they have a killer lineup
And we can’t wait to kill them!

Chrysler has been whistling through the graveyard for decades
DrFill

06/16, 12:05 AM

posted by:

idrinorbarsaku

that chrysler comment made me laugh!!! LOL

06/16, 1:14 AM

posted by:

leftwingagenda

somebody get mayer a new tinfoil hat, i think his old one fits way too tight…

drfill, i’m hopeful for ford due to the fiesta, but if that bombs i’ll be worried…i’m happy with their position with respect to returning to profitability, even if i’m not that enthused about their entire lineup…although you have to admit the 2010 mustang holding it’s ground against the camaro and challenger was a good showing…

the anti-obama stuff does get tiresome, though, it’s not like you guys are actually proving a point, you’re just flaming somebody who you personally have demonized (who will never see what you wrote)…don’t pretend for a second your blathering is going to affect anybody else’s opinion on the matter…you’re really just mentally whacking off by posting that crap again and again and again…

06/16, 7:59 AM

posted by:

carstuff

All 3 domestics are in trouble in almost the same way AS IS almost every manufacturer in this country, for those left anyway. Yes Chrysler is a different story because of a lack of car products and quality but hopefully the Fiat tieup will help that.

The ONLY reason Ford is not taking (they have already asked) for government money is due to a $21.5 billion loan they took as of January ‘09. When that money is gone they will take the money from the government IF they will let them have it.

06/16, 8:00 AM

posted by:

SomeGreek

rollercoaster5
“America used to be the land of the brigthest, hardest working thinking people this palnet has ever seen.”
Or maybe you’re just an other empire that will eventually shrink and divine (like dozens on the past)… But i don’t think we’ll live long enough to know.

06/16, 8:05 AM

posted by:

HoosierHero

Conspiracy theories aside, I agree with Bill Ford. While GM and Chrysler might emerge leaner and meaner, the government entanglement could hinder development and competition. Ford, meanwhile, has the freedom to pursue new technologies and markets as they see fit. Now only if they could get their European crap over here so my stock would go up…

06/16, 9:38 AM

posted by:

spg900

leftwingagenda – AMEN .

06/16, 10:19 AM

posted by:

enthusiast89

there are some real conservative nutjobs on this site. Dr. Lincoln, Mayer, what would have had the government do? let the companies go into bankruptcy? do you realize the repurcussions??

06/16, 10:33 AM

posted by:

oldraven

How do you like Bill Ford Jr. showing his face again, now that someone else fixed the company. “We’re respectable again. I’d better jump in and take some credit!”

06/16, 11:34 AM

posted by:

mayer_ray_nagin

LWA is tired of hearing what a dipsh!t POSident Oblowhard is. TS, dude. You are a collectivist drone by choice – doesn’t get more idiotic than you and your loons.

06/16, 11:37 AM

posted by:

rollercoaster5

There would have been massive short pain, unlike anything we would have ever experinced.

Yet , the pain we are going to through when the Federal bill comes due is going to collaspe this once great country.

Did anyone notice that numbers released yesterday showed that foreign governments only purchased 11 billion dollars of our debt, the month before they purchased 55 billion dollars of U.S. debt. Where will we get the money all of these bailouts if no one is buying our debt?

Well….we can always just print more money….Obama Bucks… always has worked for other countries like say Germany, Agrentina, Poland, etc.

06/16, 11:44 AM

posted by:

ricky_b

I wish people would stop harping on Bill Ford. The fact is, he never wanted the position as CEO and he never intended to stay there. He took over the company to help repair Ford’s position with customers and Firestone after the horrible mess left by the last CEO, Jack Nasser. Bill Ford was instrumental in helping to get Mulally on board. Give the guy credit for nowing when to look for help and getting that help there.

As for the future of the Big Three, I think Mulally is steering them Ford in the right direction. He’s calling for future platforms (not cars) to be common around the world. I’m hopeful that we’ll start seeing more products in the near future that appeal to those of us who prefer sytling and handling of european cars.

Chrysler – I’m VERY intrigued by the union with Fiat. Will the quality and products be there? I don’t know, but I’m curious to see how it rolls out. My biggest “worry” would be for GM. They will be under the worst scrutiny by customers and the government. They may have also shot themelves in the foot with some of their recent sales announcements. Opel is being sold and I find them to be the most appealing of GM platforms sold in the US. Saab is being sold and has been set up with the latest Opel platforms which could really hurt the new Buick lineup for competition. Saturn (which everyone thought might die) may have a chance under Penske, esp if aligned with another company (rumors of talks with Nissan for designs and powertrains… very interesting).

Obviously, it’s going to take time to see what happens. But you all have to admit that these developments are certianly more interesting to watch than the way the Big 3 had been going in prior years. Just look at it as another popular reality show.

06/16, 11:51 AM

posted by:

Bob

I must admit you guys are unjust with your comments about Ford. Its so obvious none of you made it much past the fifth grade. Its very possible most of GM is not smater than a fifth grader either or they would have at least tried to save them selves as Ford has. Dr. fill should sign as (Dr.full of ****) your perspective means nothing, just like GM nothing. Gm was so waistfully large they dont even know their dead. It took Studibaker three to four years to officially end production so you still have a chace to buy that little Chevy tin can or that 7,000 pound Camaro that has 425 horse power but cant get out of its own way. GM is just like the movie Transformers , written for ages three to five. Ford Lives on not because they are a cocroach but because they have virtue somthing you GM followers wouldnt know if it hit you in the face. Im so glad GM is gone. Its also ashame that free press has come to allow Idiots express them selves and embarrass the American people in front of the world the way you people do.

06/16, 1:04 PM

posted by:

oldraven

Bob, you can’t deny that when Mullaly got the job, Ford disappeared from the limelight completely. Now that there’s some hope for the company, all of a sudden he’s making press releases and getting his face in the news again. Not that he had anything to do with the turnaround, but he’s decided to step back out and be the face of the company again now that it has happened… or at least is expected to happen in the not too distant future. College Grad., by the way. Working as a Mechanical/Architectural Drafter for nearly a decade now, with a company of my own, with my Drafter wife, designing homes. Call us uneducated, then say GM was ‘waistfully large’. Irony? Yes, I’d say so. The only large waists there were those of the fat-cat board members. And it’s ‘they’re dead’, for the record. I guess you can graduate in your state without any comprehension of grammar. And GM is gone? When did that happen? The last I read they were restructuring under bankruptcy protection, not liquidating their assets. Ford only lives on because they managed to secure additional credit just before the bailout loans were agreed upon. That is the simple truth.

Just so you don’t call me a GM follower, know that I currently own vehicles from GM, Ford, and Chrysler.

06/16, 2:21 PM

posted by:

spg900

Mayer – you know how EVERYBODY in the world knows that those suicide bombers are IDIOTS but them…….. well YOU AND YOUR LIKE are part of the 50% (hopefully less ) of rednecks that the rest of the world know are IDIOTS !!

06/16, 4:01 PM

posted by:

mayer_ray_nagin

SPG = collectivist drone also.

06/16, 4:06 PM

posted by:

yarddog82abn

ALL THE FORD HATERS CAN GO SUCK A BIG ONE!

06/16, 9:10 PM

posted by:

DrFill

Bob
That English tutor has really done wonders!
You could almost pass for a resident alien
Almost
DrFill

06/17, 8:59 AM

posted by:

jdasch1

Fill- get some anger management help…your posts are predictable and, well, showing your low life existance. Keep up the good work doctor….not …

06/17, 9:46 AM

posted by:

tripleonefive

Ford’s quality is one point behind Toyota and better than Honda.”
Yea according to studies commissioned by Ford There is no credible evidence that puts Ford up there with Toyota and Honda. Yes I know it’s in their commercials but that doesn’t mean it is true. Honda and Toyota should send Ford a cease and desist form

06/17, 1:38 PM

posted by:

Bankruptcy2009

Actually neither of you guys are right, because last survey Ford was Tops in Quality better than Toyota and not following either. DrFill your a USED TAMPON OK. or maybe your just the NEXT HOLE over! LOL

But as far as Ford not taking the funds well. I’d still hold out on that if they need it they need it. And if they don’t they don’t

06/17, 7:38 PM

posted by:

tripleonefive

Please site this reliable automotive survey If you cant then stop your lies

06/17, 8:53 PM

posted by:

Bankruptcy2009

tripleonefive it was all over the news have you been in deep freeze you must be.

06/17, 9:20 PM

posted by:

tripleonefive

all over the news doesnt answer my question Provide a VALID source or stop your lies !

 
 
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