Update on Auto Aid from government...

[Fandango]

http://www.msnbc.msn.com/id/28108346

There is almost a deal in place as of an hour ago.

http://www.msnbc.msn.com/id/28108346

DEARBORN, Mich. - By shunning government loans, Ford Motor Co.'s top executives say they hope to buff up the automaker's image and set it apart from its cash-starved Detroit competitors, General Motors Corp. and Chrysler LLC.

GM and Chrysler are in desperate need of government money and may not last until the end of the year without it. But Ford set up $23.5 billion worth of credit in 2006, and both Chief Executive Alan Mulally and Executive Chairman Bill Ford Jr. told The Associated Press on Tuesday they are confident that the borrowing, coupled with restructuring and new product plans, will get them through the recession without relying on the government.

Ford even said the century-old company that bears his family's name might be able to use the independence from loans to its advantage.

"I think if they see Ford as a company trying to pull itself up by its own bootstraps, and making it on its own and pulling the right levers, I think that could be a positive for us," Ford said.

Mulally said Ford has completed much of the restructuring that Congress is demanding of the other two, slimming down its brands by selling Jaguar, Land Rover and Aston Martin and studying the sale of Sweden's Volvo.

Ford, he said, has cut its factory capacity to match demand, and it anticipates no further cuts will be necessary as long as the U.S. auto market doesn't worsen considerably. The company has announced the closure of 17 factories and eliminated 50,000 jobs since 2005, many through buyout and early retirement offers.

The interviews came as weary Democratic congressional leaders cleared the final obstacles to a $15 billion bailout of Chrysler and GM. Congressional officials said Wednesday that majority Democrats and the Bush White House finalized a deal that could go to a vote later that day, although stiff opposition lingered among some Republican lawmakers.

Among the requirements in the Democrats' proposed legislation is the appointment of a "car czar" to oversee Chrysler and GM with authority to yank the loans if the companies don't make substantial progress toward restructuring.

Both companies are likely to seek further concessions from the United Auto Workers and their creditors in order to justify the government money and prove themselves viable.

But Mulally said Tuesday he would expect the same concessions from the union even though Ford wouldn't be under government supervision.

"The UAW supports the entire industry. They represent employees at all three companies. I can't imagine being disadvantaged on that," Mulally said. "I would think whatever's done on that we would continue to do together because they support all of us."

Mulally appeared before Congress last week with the CEOs of GM and Chrysler, and said he did so to support the other automakers and to line up a government loan just in case the economy worsened and Ford might needed the money in the future. If one or both of the others go into bankruptcy, it could drag down parts suppliers and force Ford into the same situation, Mulally said.

Mike Moran, Ford's Washington, D.C., spokesman, said Wednesday that drafts of the bailout legislation show Ford would not fall under government supervision unless it actually draws on a federal loan.

Ford wants to set up a $9 billion long-term line of credit from the government but would use it only if the U.S. auto market worsens or fails to recover. The company has said it has enough borrowed money to make it through 2009 without government help.

Ford is not looking for money? Oh wait, the have a credit line already. They are just as in need of money as GM. The second article says they have a 23.5 billion credit line for this type of situation and are keeping another 9 billion credit line from the Fed just in case. Here's my thinking: I have not seen an agresive stance from Ford to change it's restructuring. What do they know that GM or Chrylser doesn't? Where is there thinking going? I want to know something:

By no means am I covering for Ford and taking sides. If I've taken a side, it's Detroit, MI's and the AMERICAN auto industries' side. Can Ford teach Chrysler and GM something about structure and business? I know that they can't teach someone to blow the doors of a car with speed. But if they could work together as for as learn from heach other, I'd be all for that.

Another note:

I took that article from what Scott said to my class for discussion. On AOL and MSN that had the consumer ratings for top hybrid pics. Prius is a top hybrid true, but Ford, Chevy and Saturn round up at least 8 of the last nine Hybrids. Prius and Camry Hybrid are the only have 20% of the top hybrids in the Market.

But this article shows diferent: http://alternativefuels.about.com/od...topten2008.htm
Shows Malibu as top dog and Prius at 10. You even have a Jeep in there.

I'm no expert, yet, and I stess yet. I think this is coming down to simple cost and labor issue as we already know. But, GM has to have a more agressive Marketing plan for its hybrids. I'll tell you. I am an economics pro, not expert Phd, but I will say that people will buy the commodity (car) for the same price as another, what will seperate the two is utility. In other words, if Prius and Hybrid Malibu are the same price consumer will buy the one that gives them the most quality and or pleasure. Malibu hybrid has to be marketed as such and has to provide as well. If I'm "joe consumer" and I'm looking for a hybrid the first thing that comes to mind is Prius. GM needs a agressive plan to make Joe consumer top prius, camry hybrid, and accord hyrid. Same with Ford and Chrysler. They need a synonomous symbol equal to that of prius. Appeal to the current economic situation: Buy economic, buy quality, buy reliabity, buy AMERICAN. They have these vehicles, articles prove it, it's time market them better IMO.

Just my thought for today.

Fun Fact:

Did you know that Top Gear had a Prius and 3 series BMW on the test track one after the other, driving the same speed, and the Prius got less MPG than the BMW? I'll try and find that on YouTube later and post it.

[MerF]

Originally Posted by Fandango

Did you know that Top Gear had a Prius and 3 series BMW on the test track one after the other, driving the same speed, and the Prius got less MPG than the BMW? I'll try and find that on YouTube later and post it.

Yes, and it's because the Prius needs stop and go to lay claim to it's big efficiency numbers. Once that toaster on wheels gets moving it's drag coefficient and power to weight is rediculous for highway efficiency.