Ford throws support behind aid for GM Europe
Despite the fact that Ford has yet to request any special funding from either the federal governments in the United States or abroad, the automaker has repeatedly said that it supports its competitors as they seek financial aid. According to Ford of Europe CEO John Fleming, "We have no objections to competitors asking governments for support in these very difficult times."While some might think that Ford would stand to benefit if its largest competitor went the way of the Dodo, in reality, it's much more complicated than that. Says Fleming, "I would rather take sales from competitors by having better products rather than them going out of business." Plus, there's the sticky supplier situation – the loss of an automaker or two could have a drastic impact on the already weak auto supplier industry.
In lieu of propping up individual automakers on a country-by-country basis, Fleming suggests that the European Union as a whole should introduce its own aid package that would affect all automakers equally.
[Source: Automotive News - Sub. Req.]
Reader Comments (Page 1 of 1)
Ben Poese 6:48PM (3/19/2009)
"Fleming suggests that the European Union as a whole should introduce its own aid package that would affect all automakers equally."
Kind of ironic considering the lack of aid the American government is offering the import brands...
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EU_reader 7:25PM (3/19/2009)
True.
Then again, who gets any wiser from those complex brand/company structures. Is Opel European? Or is it American because of GM? Who should bail them out? Because none of your bailout money will benefit opel I presume. Save your own brands first.
Then again, why should we bailout companies on the brink of bankruptcy? Throwing away money in a bottemless pit?
Saab, Opel, they both knocked on the door of their Swedish or German government, and got a big 'no' for an answer with their current state of affairs and business proposal. Seems we are a lot more hesitant to do the same thing.
Still, things being as they are, Opel is fairly screwed at the moment. GM's fault? Who's to say. Maybe if GM would allow Opel to be independant so that we could save them ourselves. We have to negotiate with GM's CEO's that are interested first and foremost in their domestic businesses. They haven't agreed with or responded to any negatiation meeting with European officials. We can't wait forever...
And of course, Europe consists of numerous nations. It would be like dealing directly with the goverments of your states. So Michigan bailing out Detroit, and so forth. A whole lot more complicated since it's much harder for Europe as a whole to find some common ground, uniting the best interests of every participating nation.
EU_reader 7:29PM (3/19/2009)
By which i mean:
We don't have any Buick/Chrysler/Jeep/... plants. What we're interested in is saving Opel for the jobs they offer. We don't want to give any money to opel, which then gets transferred away to GM HQ, and put back into your failing brands.
Opel money for Opel only (and vauxhall, you get the point)
superman211 1:00AM (3/20/2009)
GM and AIG need to go the way of Ch11 and leave the earth. Businesses must fail if they have not ran themselves well and fail to adapt to changes.
SRY hard fact of life. As an entrepreneur and a hard working business man I am disgusted at the whole bailout thing. Too big to fail? Time will tell. To failed to last is more like it. What would happen if I ran my business like AIG or GM? I would go bankrupt and FAIL! Yes, and nobody from DC would bail me out would they. I would not accept help from them even if they did. It's wrong. Stealing from the taxpayers and then asking them to spend more money that they never had and never will to "stimulate" the economy is foolishness.
Swede 8:19PM (3/19/2009)
Of course we'd prefer to see a stable Opel. The only problem is GM North America and the complete lack of confidence Wagoner and Henderson project.
Spending money to help Rüsselsheim = OK
Spending money to help Detroit = not OK.
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cm 9:08PM (3/19/2009)
Well, the problem is the management of that whole company. And there is only one top management for both NA and EU operations. GM Europe has been in a very very bad shape for the past 8 years. Now, it's at least getting some decent products on the market (Opel at least). Not great, or good, but decent. So let's not get too overexcited.
Save Opel? Yes, but for the sake of the jobs at Opel's suppliers. Far more then the 26k jobs at Opel itself. Cause Opel/GM is simply wasting the talent of their European employees right now.
Matt 8:39PM (3/19/2009)
Ford has indeed requested special funding from the US Government...9 BILLION in loans...for when they need it.
The money already has "Ford" written on it.
And Volvo (who is owned by Ford), has taken money from the Swedish Government.
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cm 8:52PM (3/19/2009)
True, Ford Europe is getting loans backed by at least the Swedish and the Romanian governments.
Swede 7:05AM (3/20/2009)
And it's been a non-issue because Ford have expressively said it'll take full responsibility for Volvo until a buyer can be found. GM on the other hand, came here, demanded money, and wanted to give nothing in return. That sort of arrogance does not fly.
pollen sniffer 9:22PM (3/19/2009)
Gm still exists in Europe?????
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Bob 1:05AM (3/20/2009)
replying to EU Reader
you do realize the WH grand cherokee is built by steyr magna in austria correct?
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DasBoese 8:56AM (3/20/2009)
Again with the "If we give money to Opel GM is just gonna steal it!" comments.
FFS people, get it through your head: It's not going to happen. Opel IS General Motors in Europe. Do you think they'd throw away their best selling brand and their reputation for a relatively small amount of extra money? If they're that desperate, why did they forego $2billion in US loans recently, declaring they don't need them?
It's populism, nothing more, and you fell for for it.
BTW there are more reasons for Ford to support aid to their competitors. Not only would they take a hit through their suppliers in case of a bankruptcy, but there's a much more direct effect: Within weeks the market would be flooded with millions of cars at fire sale prices.
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