Quote:
Originally Posted by DaBears
Yep, looks like they made good decisions to avoid asking for a handout. just like I said before.
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Don't call them "good decisions". Ford was as desperate in 2006 as GM was in 2008/2009. When Ford had to make those deals to stay in business, there was money to be borrowed. When GM and Chrysler needed the money we were in the middle of the financial melt down and there was no money to be borrowed at all.
So the big difference between Ford and GM is Ford tanked sooner. And in the end they waved the bankruptcy stick to everyone and got great deals with their bond holders.
And the final proof. Why on earth would the UAW give Ford every single dime they gave GM and Chrysler (with the exception of the no strike clause which the government mandated in the bailout for GM and Ford)? Any reason why if Ford had made such wonderful decisions the UAW would hand over all that? Because Ford was still in the crapper and threatened that they too could still go bankrupt.
Look Ford has done some nice things. But they are still a Europe dependant company. GM rolled the dice in China years ago and it is paying off nicely. So Ford without any real sales in China is going to lose money for 2 quarters in a row.
Also, go look at what company borrowed the most from the DOE on low interest loans for improved FE and emissions? When I saw the list, Ford was asking for money for things GM had in production for years and they had a ton of nickle and dime projects outlined to get at that money. Not sure how much they got, but lets say they were the biggest piggie at the trough.