While General Motors and Chrysler are saying they may very well go under by January without federal help (GM has recently backpedaled and now say by mid next year), what's been missed in most of the media is that Ford ISN'T looking for a bailout or loan.

What Ford is after is a federal backed line of credit they have no intention of using, but can if it becomes necessary. In addition, Ford's argument for a federal bailout centers on the fact that if one major carmaker goes under, it could wipe out a large portion of the supplier base.

Intrestingly, Ford's upcoming Euro cars isn't as dependent on the US supplier base. If things go south quickly, Ford still has enough time to source parts from other sources, including those that supply the overseas versions of the vehicles being made here.

Chrysler is by far the most venerable if GM folds, and is the car company in question whenever you hear that a collaspse of General Motors would likely take another US brand with it. Although sold in many places on the globe, Chrysler is almost exclusively (80-90%) a North American auto company, and as a result is almost exclusively depended on North American suppliers. Also, unlike Ford, Chrysler can't generate the volume of sales that Ford can.

 

Well thanks Captain Obvious.

 

Ford is taking the "safe route"...like...not persuing a Volt-status vehicle.
I don't blame them, and for all intents and purposes; it's a smart move. We see the 'rewards' you outlined above.

But it doesn't make them better imo, if that's what you're getting at.



(and I'm not an anti-Ford guy, but I wanted to chime in.)

 

 

Read the news at all and you would know this already.

 

In the long run, what difference does it make that GM wants a loan and Ford wants a line of credit? We all already knew that Ford's finances were in better shape than GM's.

 

Are Ford's finances actually in "better shape" or are they just further in debt??

I 'thought' their money came from morgtaging everything they owned last year??

 

They currently have more operating capital and have lower operating costs than GM. Sure, they're in debt up to their eyeballs, but they have a plan to get those mortgages paid off and get back on track. "Better shape" is relative - as they can keep making cars for a bit longer without outside help where GM cannot.

 

Beat the dead horse guy, the frequency of "Ford is in better shape" comments is starting to rival Z28x's doom and gloom posts

 

And yet both are right!

Many do not follow new sources on a day to day basis. We are on a car forum where most people here do not discuss financial topics in a cohesive manner.

Also this forum attracts a drastically different audience than what appears in the lounge on a day to day basis, although with all doom and gloom the lounge has been invading here the last few months.

 

My understanding is that they lined up their credit before the economy tanked. GM was assuming the economy wouldn't tank this year, while Ford wanted to be ready in case it did. Or maybe Ford was just lucky. ????

 

I think what it boils down to is that Ford needed the money at a particular time and mortgaging its physical assets was their only real option for them - I guess you could call that lucky or at the very least, fortunate for Ford that they didn't have to go looking for funds in this current market.

 

I'm not anit-Ford (rather, just love GM) but... Ford has mortgaged most of its assets to raise money, including its blue oval logo.

Doesn't that smack of desperation? In similar vein to what GM is now going thru?

 

Ford has more or less done an admirable job... they just don't make a car that I want to buy.

I do have a slight bias against them because my experiences haven't been all that positive (granted, one in particular was really a Mazda). I'm an equal opportunity hater as I've got more experience with imports than I ever thought I would.

I'd buy a Ford over a Chrysler. At the end of the day buying domestic does carry weight with me but it's not the only factor. Luckily there's not a lot of imports in categories that I like to buy

I know, it's stupid to be nationalistic.

I think it's obvious, and has been for a long time, that one of GM's problems (but certainly not the only) is that they've come from being the big guy on campus to lots of competition in a competitive but long term market.

 

GM is not alone on that front! Did somebody say Daimler Benz? Their shares have dropped 64% this year alone... valuing the company at $23B euros.