Mulally on Ford: "We are competitive now."
For starters, Ford managed to get the UAW to concede more ground and rework agreements. Unlike GM's present situation, Ford's bondholders didn't keep shaking their heads when Ford needed to exchange debt for equity, permitting Dearborn to reduce its debt liability by nearly 33%. Ford (finally!) began showering its European design flair and cars on an American public thirsting for beautiful domestic offerings. And Ford has cut production to match demand. The result: there are 32% fewer cars on dealer lots than a year ago.
Mulally says that Ford has prepared well enough that it won't need to take taxpayer money unless things get decidedly worse, but he doesn't believe that will happen. Although he believes that Ford can't turn itself fully around until the economy does, he did say, "The downturn is a temporary thing. We just have to make it through it."
[Source: Detroit News]
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