Ford may not need bailout money, but will take efficiency subsidy
Articles — By forcechange on November 24, 2008 11:47 am
Following up on our earlier post about Ford, the NY Times notes today that of the Big Three automakers, Ford is the only one not seeking an immediate cash infusion as a part of any bailout. This is because Ford has a reasonably large cash reserve of $19 billion and a $11 billion line of credit.
Ford acquired this cash, in part, through mortgaging most of its assets, including its iconic blue oval logo, two years ago in an effort to build up its cash balance. Now, Ford Jr., the company’s chairman notes, “We’re trying very hard not to need [the bailout money]. Our plan is to have our own liquidity and get through without it.”
However, this will not preclude Ford from applying for $7 billion in loans from the $25 billion already offered up by Congress to the domestic automakers in order to subsidize their efforts to become more fuel efficient.
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Ford also has it’s legacy costs, and cannot really continue to rally the troops long term. It was the first to rely heavily on IMPORTED parts, and now is the most foriegn of the U.S. brands, with most lines being over 50% from overseas. It isn’t saying NO to bailout money because it doesn’t need it, it is wanting to avoid government involvement at all costs. There are BILLIONS of dollars in unsettled lawsuits for product defects, and probably a million unsafe vehicles out there that should be recalled. People are dying everyday, and the coverup is red tape. I have always bought American, but Ford is a Unamerican sheep in wolf’s clothing.
Speaks with forked tongue. Only true staement is Ford wants to avoid government intrusion at all costs. Any smart company would.
I am appalled by what you have said about ford. I’m 34 years old and all i have ever owned is ford. And I will never down grade to anything else. I bet you drive a chevy. Sucks to be you!!
I think Ford is hiding behind the bailout incentive. They are using it as a mask to fool consumers into thinking they are the good guy in all of this.I am sure that they are using tax payers money the same as everyone else. Just because u take it in loans don’t mean u are not taking it. If u stop and think about it. This is a great marketing ploy to fool Joe consumer. Koodos to the Ford think tank on this one I guess. I just know that i will never buy a North American made vechicle again. If they can’t do bussiness as a company. Then get out of the bussiness
it’s kudos, not koodos.
They are very good then. Because they are the good guy. You will not buy Dove or GM because they took bailout money. You will not buy Ford because they did not- they must be hiding something. Go buy Japanese then, send your money to Japan. They are hiding something, e en though the factory that made your car is here, it is just assembled here, most parts are manufactured overseas and all profit goes overseas. Geez.