Mulally confirms Ford isn't seeking federal funds
Ford won't be joining General Motors and Chrysler on any return trips to Uncle Sam's Bailout Buffet. The automaker plans to stay in Dearborn and cook dinner at home, so says CEO Alan Mulally, who told reporters at the NADA convention, "We don't want to borrow any more money. We have sufficient liquidity to fund our transformation plan, which means our business is in a relatively good shape." While GM and Chrysler were approved for over $17B in bailout bucks and are already well into the cash pile, Mulally had instead requested access to a $9 billion line of credit (you know, just in case). The difference: the feds have yet to move on Ford's request.
Ford's decision to basically mortgage everything it owns during a $23 billion borrowing spree in 2006 has become the catalyst for a significant and ongoing PR victory. Those actions are what let Mulally distance himself from his counterparts during the Capitol Hill bailout hearings, and they're paying dividends again now as Mulally tells the world that Ford doesn't intend to look for any more dough. We've talked to plenty of friends and relatives – people who don't otherwise follow the auto industry – who view Ford in a more positive light specifically because they didn't take bailout money. Yeah, Ford is in debt up to its eyes, but it made its moves on its own, long before the Detroit death struggle became C-SPAN programming. If Ford manages to pull this off, Mulally will have shown himself to be well worth every penny that Ford pays him.
[Source: CNN Money]
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Reader Comments (Page 1 of 3)
Mazda FTW! 7:44PM (1/25/2009)
Good for Ford. But GM isin't going anywhere either
http://www.buick.com/ngis/buick/pages/mds/vehicles/futurelanding.do?evar2=lacrosse2010reveal
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That One Person 7:54PM (1/25/2009)
What's wrong with the 2010 LaCrosse? It's definitely a huge step forward as far as current Buick vehicles go.
But GM does have a lot more issues compared to Ford (even though they are both still in an uphill battle). Ford has surprised me and this is coming from a Ford fan. GM, while I like their vehicles, just keeps knocking themselves back down. A good example of that is Pontiac and even Saturn.
aj121489 7:59PM (1/25/2009)
Yea I'm not sure I really see what's wrong with it either. Granted, it's nothing exciting. But it's also not bad lookin either
Sandeep 8:40PM (1/25/2009)
I think he's trying to say the LaCrosse is going to be a hit, hence why GM isn't going anywhere.
And I'd like to agree with that...if the car market and labor expenses can be dealt with until all these new (and significantly improved) products are available.
Mazda FTW! 8:49PM (1/25/2009)
Sandeep is correct...I was pointing out that its a great new product.
TyWright 9:30PM (1/25/2009)
Thank you Autoblog for acknowledging the FAKE LAME hood scoop that severely compromises the Mustang brand. So embarrassing.
Luke 10:05PM (1/25/2009)
GM's not going anywhere? Because of one car? Maybe you should tell them that...
http://www.autoblog.com/2009/01/21/gm-warns-it-could-be-out-of-cash-by-march-31st-if-second-5-4m-l/
Jason 11:42PM (1/25/2009)
I agree with Luke. One car will not save GM. At least not a Buick.
Berto 7:46PM (1/25/2009)
Ford just couldn't resit... they had to add a hood scoop.
Nonetheless, pretty glad Ford will manage to hold its own.
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KeatMP 8:34PM (1/25/2009)
It would look better without it...
The graphic made me laugh.
firstplace 8:40PM (1/25/2009)
stupid scoop. they dont work unless your going 350- 400 mph anyway. But good for ford. I know which direction I would go if I were buying a muscle car.
Jason 11:41PM (1/25/2009)
Uh....Subaru says you are wrong.
jbuers 2:15PM (1/26/2009)
The scoop on the Mustang is for a ram air intake that isn't there and is completely cosmetic; the scoop on the scoobie is for the intercooler, and makes a lot more sense seeing as how it's functional...
The first car I bought was a Mustang, and I'll be buying, at minimum, one more. Once I buy another Mustang, the first thing I'll do is remove any non-functional body work... anything that is "Race Inspired Cosmetic Enhancement" so to speak...
jc 7:48PM (1/25/2009)
Ford's doing a nice job.They're pretty underrated considering they offer a good size car(the Fusion 2.5 I4 )that gets 34 MPG HWY.
Pretty good.
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The Luigiian 7:52PM (1/25/2009)
It's not for certain that Ford's not going to take money from the U.S. If the economy continues to crumble, Ford may find itself in dire straits, although obviously less dire ones than GM or Chrysler.
That said, I as a future taxpayer wouldn't mind giving Ford a bailout. At least they've done their best to try NOT to take one. They switched management when Bill Ford finally realized he wasn't qualified to run the company. And, most importantly, they're working on sensible, *economical* technologies to improve fuel economy (most notably EcoBoost) and they're bringing good, reliable vehicles to the United States.
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Matt 8:25PM (1/25/2009)
Ford has already taken a bailout...23 BILLION in 2006.
Travis 9:38PM (1/25/2009)
@Matt - You know that a bailout refers to GOVERNMENT money, not the $26 billion that was raised PRIVATELY by Ford in 2006, right???
Luke 10:07PM (1/25/2009)
Travis...apparently not. Some people just don't have the technical know-how to distinguish the fine line between LOANS and BAILOUTS. Cuz, you know, they're soooo similar.
alex 10:15PM (1/25/2009)
you guys need to put on your thinking caps here... Ford took out $23 billion in loans from..... banks! who took out $1 trillion from govt! GASP! looks like the tax payers are funding ford!
g00fba11 11:43PM (1/25/2009)
@Alex:
by that logic, your home mortgage, or whatever other debt you have, are also funded by taxpayers. Shame on you.