Is Ford's Refusal Of Bailout Money Going To Be A Decisive Advantage?

All the more power to ford. I sure hasn't stopped Toyota from stooping that low.

— Joe_Limon (View Profile)

Posted on 4/16/2009 1:11:15 PM | reply to this comment | Votes: 5   

Advantage? Probably not. If anything, it may be a disadvantage. In the coming years, things will return to normal, GM most likely isn't going anywhere, Chrysler will most likely still be around in some form.

Only difference will be that GM will have nearly no debt and will be very streamlined. In this respect, GM may be better off in the long run. People will quickly forget the whole "bailout" deal which was completely blown out of proportion by an out of control media. Does anyone remember Chrysler in 1979? Did anyone not buy Dodge products in the 1990's because of what happened in the late 1970's? Short answer: No.

— neutral (View Profile)

Posted on 4/16/2009 8:41:30 PM | reply to this comment | Votes: 0   

When Toyota stops benefitting from a manipulated ¥ value, and Japan stops forcing all consumers to dump their cars every four years (and maybe really opens their markets), I'll consider that they don't get massive, constant stimulus.

Meanwhile, if GM goes bankrupt, and takes suppliers with it, we'll see how long deeply levereaged Ford can go without bailout loans.

Ford's decision to eschew bailout money was practical, not philosophical. Having seen the lights at the end of the tunnel sooner, they borrowed money back when you could. Period. It has nothing to do with philosophy, and everything to do with dumb luck.

— LauderdaleDriver (View Profile)

Posted on 4/16/2009 10:36:33 PM | reply to this comment | Votes: 1   

It depends on how you answer this question: Do you view Ford as a stable company compared to the other Detroit competitors and even in the auto industry as a whole? My answer would be yes.

— Obliv (View Profile)

Posted on 4/17/2009 2:27:24 PM | reply to this comment | Votes: 1   

IMO Ford is in a good position now because they have money and don't need bailout for now. Secondly, they will emerge as the lone Big 3 company that wasn't bankrupt and they can brag about it in the years to come in their ad campaigns and Third, their reputation will not be tarnished as they continually roll out good world class products. Both GM and Chrysler have to go through the stage of conditioning consumer's minds in the future that they have recovered and that they are here to stay etc. For Ford, its like business as usual. Lastly, Ford will benefit from what GM and Chrysler has negotiated with UAW, creditors, suppliers, etc. by following what they have agreed on without being in the limelight and under government control.

— woood (View Profile)

Posted on 4/17/2009 11:34:59 PM | reply to this comment | Votes: 1