Currently reading: Ford spurns government cash
Blue Oval steps away from the brink on funding

Ford has distanced itself from its Detroit neighbours, GM and Chrysler, by turning down US government money.

The terms of the bailout agreed by the House of Representatives last night are so restrictive that Blue Oval bosses are doing everything they can to avoid taking federal loans.

"Ford is a company trying to pull itself up by its own bootstraps, and making it on its own and pulling the right levers," executive chairman Bill Ford Jr. told reporters.

Since negotiations for aid began, Ford has only ever asked for a line of credit, which it would be able to access if the economic conditions worsen.

The Blue Oval is now relying on its overseas operations - particularly the successful Ford Europe - to prop up the business and is rushing forward new, greener models like the Ford Fusion hybrid.

Ford set up a $24 billion credit line with banks in 2006 and this has allowed it to shift to building smaller cars and researching future technologies more quickly and effectively than GM or Chrysler.

It was also able to streamline more quickly - selling Aston Martin, Jaguar and Land Rover.

CEO Alan Mulally believes Ford will be able to weather the global economic storm on its own if “current economic conditions remain relatively stable”.

But the company is continuing in its efforts to secure $9bn of emergencies-only government funds as a contingency plan.

Mulally has also stated that he will offer his resignation if the firm needs to dip into government money.

Will Powell

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North 12 December 2008

Re: Ford spurns government cash

Just as clarification!!...I do not know much about automotive safety regs.....for other sectors (of need/business) I am fully aware of all safety regs!!!.......as a clarity point!!!

And Wow....the news this morning re. the others........GM and Chrysler........Ford tactics and strategy are bob on!!!

The question is now....will GM and Chrysler last until Obama gets into office?.....

North 11 December 2008

Re: Ford spurns government cash

Completely agree........I do not know much about the safety regs but to standardise would be great.....I am not sure but I seem to remember "topping" i.e. the EU upped the regs a while ago, then the US upped and then the EU upped etc.....!....I could be very wrong but it sticks in my head a bit of regs tennis went on and maybe if competition is present it benefits us the consumer (both sides of the pond!!); if it drives up standards!

Also I was in a cab (crown victoria) on the way to an airport (in US) and I asked the cabby if he wanted an EU car.........I assured him that inside I did not think the Mondeo was any smaller (interior wise its probably longer but thinner??)....cannot be much in it....(they did (I think) have a US version of the Mondeo??)

Anyway, he said no!!!.......he was a top bloke, but he thought the EU cars were to small and under powered....I guess that is part of it.......like most things, it will be gradual on up take at first and then it will fly!!!....some things take time.....!.....!

jonfortwo 11 December 2008

Re: Ford spurns government cash

thanks guys......

But is this not the point...........

shouldnt europe and the US come together very quickly and start moving towards european models and matching legislation

Smart sell lots of the Fortwo in the US

Toyota sells the Yaris in the US

Kia sells the Rio in the US

surely if Ford shipped the KA over it would begin to shift peoples perception of the company.....and that is vital