We didn't lose the game; we just ran out of time. - Vince Lombardi

The Big One

by Hal_10000

Those American car companies are just hosed.  No way they can compete without giant stacks of federal money.  Why, we may need to ... wha?

When Ford Motor (F) Chief Executive Alan Mulally decided not to ask for a government bailout, it wasn’t just because Ford is in better financial shape than its Detroit rivals. Company insiders say the overarching goal was to separate Ford in the public mind from General Motors (GM) and Chrysler. As the crisis afflicting the auto industry has deepened, Mulally & Co. have gone out of their way to convince car buyers that Ford is stronger, greener, and more technologically advanced than those other guys. Executive Chairman William C. Ford Jr. sees an advantage if “people view us as a company that pulled itself up by its own bootstraps.”

...

At a time when GM’s and Chrysler’s financing arms have been hard-pressed to make loans to potential buyers, Ford has been using television, online, and radio ads to remind the world that it has money to lend. And executives have been falling over themselves to promote Ford’s kudos from Consumer Reports, which this month noted that of eight new Detroit cars it recommends, six are Fords or Ford brands.

Is the PR offensive paying off? Ford says it is. In a dismal fourth quarter, it notes, only Ford, Honda (HMC), and Toyota increased their market share among the top six carmakers. Ford surveys, says a company insider, show that when consumers are asked about Ford as part of the Big Three or the Detroit Three, they “express pessimism, concern, and lack of confidence.” But when the questions center on Ford alone, this person says, confidence shoots up—"and not just by a couple of points.”

Ford is on shaky ground but they are trying hard to get on their feet.  Ironically, they may get hurt by the federal bailout of GM, since it will both taint Ford and make UAW unsympathetic to their plight.

We’re living in a world where a failing company (GM) is in a better position than a successful one (Ford).  Paging John Galt.

Comments

Posted by HARLEY on 01/18/09 at 04:11 PM from

oh by, i can see it now.
GM and Chrysler get the bailout, the unions get what they went from GM Chrysler.

Ford, not taking the money will face the possibility of strikes ,Union harassment and political pressure.
to sum it up....
the union rep tells the CEO of FORD, “Give us what we want or we will break you.”

Posted by InsipiD on 01/19/09 at 10:55 AM from

Ford, not taking the money will face the possibility of strikes ,Union harassment and political pressure.
to sum it up....
the union rep tells the CEO of FORD, “Give us what we want or we will break you.”

Quite the opposite.  Ford can tell the UAW that it’s our way or nothing.  By taking bailout money, GM and Chrysler are basically agreeing to terms spelled out by whatever Democrat wants to (Frank, Reid, Pelosi).  Ford is free to tell them that there are no jobs at the current pay level and what has to be done to preserve the company.

Posted by HARLEY on 01/19/09 at 03:57 PM from

Quite the opposite.  Ford can tell the UAW that it’s our way or nothing.  By taking bailout money, GM and Chrysler are basically agreeing to terms spelled out by whatever Democrat wants to (Frank, Reid, Pelosi).  Ford is free to tell them that there are no jobs at the current pay level and what has to be done to preserve the company.

how are they going to get around the contracts?

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