Blue Oval warns US government that GM and Chrysler shouldn't get preferential treatment
2 June 2009

Ford has warned the US government it must ensure that all car makers compete on level terms, even though it now own major shareholdings in GM and Chrysler.

"The reality is, if you're competing against a company that's majority owned by the US government, that does raise certain concerns about what the competitive dynamic will be for the industry," Ford spokesman Mark Truby told Automotive News.

"So we're hoping we can work with the administration and the task force to be heard on those issues as this progresses."

Ford leaders are reportedly worried that GM's bankruptcy protection filing could impact on its supply chains, that Chrysler and GM finance arm GMAC's access to government funds for credit means that it can borrow at a lower rate, and that government money is being used to offer better forecourt discounts by GM and Chrysler.

In addition, Ford executives are said to be concerned that some its dealers also own GM and Chrysler dealerships, and that if they are closed down it could impact on its own operations.

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"We want as level a playing field as possible, and we want to make sure we're as competitive as we possibly can be," Truby said. "And if that's the case, with our new products, we'll be fine. We can win as long as there's a relatively level playing field."

In a similar move, Ford Europe boss John Fleming recently commented on the subsidies being given to struggling car makers, saying they were distorting the market. You can read 'Ford: "Rivals' subsidies unfair"' by clicking here

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