ManFord Posted December 9, 2008 Share Posted December 9, 2008 Ford Motor Company Statement on Proposed Congressional Automotive Industry Bill DEARBORN, Mich., Dec. 8 – As we told Congress, Ford is in a different position. We do not face a near-term liquidity issue, and we will not be seeking a short term bridge loan. But Ford fully supports an effort to address the near-term liquidity issues of GM and Chrysler, as our industry is highly interdependent and a failure of one of our competitors could affect us all. http://media.ford.com/article_displa...ticle_id=29549 U.S. Could Take Stakes in Big 3 Bailout Plan Gives Government Warrants in Exchange for Loans; Passage Uncertain By GREG HITT WASHINGTON -- Congress and the White House inched toward a financial rescue of the Big Three auto makers, negotiating legislation that would give the U.S. government a substantial ownership stake in the industry and a central role in its restructuring. Under terms of the draft legislation, which continued to evolve Monday evening, the government would receive warrants for stock equivalent to at least 20% of the loans any company receives. The company also would have to agree to limits on executive compensation and dividend payments, much like those contained in the government's $700 billion rescue of the financial industry. http://online.wsj.com/article/SB122875608562688401.html The nationalization of the American auto industry. I'm glad Ford is trying to steer clear. Quote Link to comment Share on other sites More sharing options...
2005Explorer Posted December 9, 2008 Share Posted December 9, 2008 Ford Motor Company Statement on Proposed Congressional Automotive Industry Bill DEARBORN, Mich., Dec. 8 – As we told Congress, Ford is in a different position. We do not face a near-term liquidity issue, and we will not be seeking a short term bridge loan. But Ford fully supports an effort to address the near-term liquidity issues of GM and Chrysler, as our industry is highly interdependent and a failure of one of our competitors could affect us all. http://media.ford.com/article_displa...ticle_id=29549 U.S. Could Take Stakes in Big 3 Bailout Plan Gives Government Warrants in Exchange for Loans; Passage Uncertain By GREG HITT WASHINGTON -- Congress and the White House inched toward a financial rescue of the Big Three auto makers, negotiating legislation that would give the U.S. government a substantial ownership stake in the industry and a central role in its restructuring. Under terms of the draft legislation, which continued to evolve Monday evening, the government would receive warrants for stock equivalent to at least 20% of the loans any company receives. The company also would have to agree to limits on executive compensation and dividend payments, much like those contained in the government's $700 billion rescue of the financial industry. http://online.wsj.com/article/SB122875608562688401.html The nationalization of the American auto industry. I'm glad Ford is trying to steer clear. This is not good. I can see the new leadership team of Ralph Nader and Joan Claybrook. I can't wait to see what Federal Government leadership will do to this industry. It's going to be ugly! Ford needs to do everything it can possible to remain independent. Of course, once Ford proves that it can do a better job then the Government at designing and building cars they will do everything possible to pull them into the fray as well. Quote Link to comment Share on other sites More sharing options...
RangerM Posted December 9, 2008 Share Posted December 9, 2008 This is not good. I can see the new leadership team of Ralph Nader and Joan Claybrook. I can't wait to see what Federal Government leadership will do to this industry. It's going to be ugly! Ford needs to do everything it can possible to remain independent. Of course, once Ford proves that it can do a better job then the Government at designing and building cars they will do everything possible to pull them into the fray as well. The last thing the auto industry needs is government 'ownership'. This is about control. They influenced (read: imposed their will with force) from the outside before, and now they're going to do it from the inside. What I am afraid of is that GM/Chrysler will become the defacto rules makers. After all, Government cannot allow one of its programs to fail, therefore they will "level the playing field" to the detriment of Ford and the others. The nightmare begins. I can only hope that in two years a new round of elections will result in divestiture. Quote Link to comment Share on other sites More sharing options...
Catalepsy Posted December 9, 2008 Share Posted December 9, 2008 So we have become China... I don't think the public have any idea how scary this is...Government now controls the banking system and now they want the auto industry. Once they gain control of the Telecom companies, we're screwed. I think it's wonderful that the politicians that regularly run deficits is now on the podium preaching about fiscal responsibility. Quote Link to comment Share on other sites More sharing options...
LSFan00 Posted December 9, 2008 Share Posted December 9, 2008 The whole "world will end" scenario grimly portrayed was always preposterous. [T]he assumptions employed by CAR are so unreasonable that its "worst case" scenario is wholly impossible. They assume that the Big Three simultaneously declare bankruptcy and shut down in 2009 and cease operations for a year. This assumption is divorced from bankruptcy reality. The usual practice in large-scale bankruptcies is for the petitioners to continue operations but at a reduced level. Because the automakers have suggested that they are at least 30 percent short of needed cash flow, a more reasonable assumption would be to reduce Detroit production levels by that percentage in 2009, 2010, and 2011 (the three years covered by the CAR study).[3] When the more realistic assumption is made, the estimate of employment loss plummets to 453,000 jobs in the first year, a figure 86 percent lower than CAR's estimate. In other words, the CAR report inflates estimated job loss by a factor of more than seven. The effort to extract taxpayer dollars to prop up GM/Chrysler/UAW is self-serving and justified by over-hyped and under-analyzed fear mongering. The bankruptcy system exists for the purposes of reorganizing failed businesses when possible, and liquidation if no "fix" can reasonably be anticipated by the creditors. I have much more confidence in this PhD in macroeconomics conclusions than Richard's assertions that mass migration and economic collapse/total shut down of the big 3 would result from a bankruptcy filing. Quote Link to comment Share on other sites More sharing options...
LSFan00 Posted December 9, 2008 Share Posted December 9, 2008 Furthermore... The foundation has an astounding $13 billion in assets. So one might ask: Why doesn't the Ford Foundation liquidate and transfer the money to the Ford Motor Co.? The foundation would surely demur, quickly pointing out it has no formal connection whatsoever with its tottering namesake auto maker. True, but we've glanced at the foundation's "mission statement," and it appears to us that Ford Motor would qualify for the ultimate grant to a nonprofit. The foundation says it supports initiatives "by those working and living closest to where problems are located." An auto assembly plant qualifies. The foundation promotes "collaboration" between government and business sectors. Meet Barney Frank and Alan Mulally, collaborators. Finally, Ford works to "ensure participation by men and women from diverse communities." Ford Motor's endangered work force defines diversity. If they have so much money to give to NPR, they might as well give it to FoMoCo. Quote Link to comment Share on other sites More sharing options...
94bronco Posted December 9, 2008 Share Posted December 9, 2008 I really hope that Ford can remain independent as if the government takes control we won't be seeing vehicles like the GT500 or Raptor in the future anymore and will all be driving golf carts around. Quote Link to comment Share on other sites More sharing options...
Extreme4x4 Posted December 9, 2008 Share Posted December 9, 2008 The whole "world will end" scenario grimly portrayed was always preposterous. The effort to extract taxpayer dollars to prop up GM/Chrysler/UAW is self-serving and justified by over-hyped and under-analyzed fear mongering. The bankruptcy system exists for the purposes of reorganizing failed businesses when possible, and liquidation if no "fix" can reasonably be anticipated by the creditors. I have much more confidence in this PhD in macroeconomics conclusions than Richard's assertions that mass migration and economic collapse/total shut down of the big 3 would result from a bankruptcy filing. While I understand where this gentleman is coming from, I also see it from the "worst case scenerio." The reality is that we do not know the actual outcome. However, one thing that we do know, and that this "researcher" and many others always fail to talk about................ is who would be stupid enough to give GM and Chrysler "debtor in posession" financing. That is the black hole, or money pit, so to speak. With lending the way it is right now, I don't see ANYONE taking the chance on these companies, except the government................ which puts us right back where we started (and are now, with government provided "loans with strings). Personally, I think the outcome of a liquidation of GM and Chrysler would fall somewhere between the "doom and gloom," and the "optimist everything will be just fine" scenerios. Quote Link to comment Share on other sites More sharing options...
DUCKRACER Posted December 10, 2008 Share Posted December 10, 2008 I really hope that Ford can remain independent as if the government takes control we won't be seeing vehicles like the GT500 or Raptor in the future anymore and will all be driving golf carts around. My thoughts EXACTLY!!!! Quote Link to comment Share on other sites More sharing options...
7Mary3 Posted December 10, 2008 Share Posted December 10, 2008 There are other reasons why Ford is reluctant to take any Federal bailout money other than they don't need it at the moment. Bailout money presents serious problems for Ford, because should they take Federal loans, those loans have to be paid back before any other creditors are paid. Ford currently has a rather large debt load because of all the borrowing Mullaly did before the crisis (nonetheless a wise move). Should Ford draw on those Federal lines of credit, it would put Ford's current creditors in a bad situation, possibly delaying payments to them. Another problem with Ford taking Federal money is how it would affect the Ford family and their special class stock. Some are already questioning why a minority group of shareholders should have so much control over Ford. Should Ford take Federal money, there could be a provision that the Ford family would have to relenquish some or all of their special privledges. Word is Ford currently has enough cash to last them until the end of 2009, should there be no further drop in auto sales. Unfortunately, I think there is a strong likelyhood Ford will eventually have to ask for Federal help, and it will be very interesting to see what happens. Quote Link to comment Share on other sites More sharing options...
mnm Posted December 10, 2008 Share Posted December 10, 2008 so is Ford in or out of these loan deals? they say theyre out, but all the articles i keep reading still mentions the 9 bil line of credit. i took from Ford's statement that they wanted no part of these loan deals-but its like no one is mentioning that. Quote Link to comment Share on other sites More sharing options...
7Mary3 Posted December 10, 2008 Share Posted December 10, 2008 so is Ford in or out of these loan deals? they say theyre out, but all the articles i keep reading still mentions the 9 bil line of credit. i took from Ford's statement that they wanted no part of these loan deals-but its like no one is mentioning that. Ford doesn't need the money now, but they may need help in the future. That's basically the situation. Quote Link to comment Share on other sites More sharing options...
mnm Posted December 10, 2008 Share Posted December 10, 2008 so will they have to go along with all of congress' bs? even if they dont take a cent? Quote Link to comment Share on other sites More sharing options...
Extreme4x4 Posted December 10, 2008 Share Posted December 10, 2008 Nope. No strings, until you sign on the dotted line. Quote Link to comment Share on other sites More sharing options...
zipnzap Posted December 10, 2008 Share Posted December 10, 2008 You know, I'm glad Mullaly did this, if only because of this nonsense... http://jalopnik.com/5102857/barney-frank-y...ord-ceo-mulally Quote Link to comment Share on other sites More sharing options...
630land Posted December 10, 2008 Share Posted December 10, 2008 (edited) "So we have become China" Yes, thanks to all the cosumers buying made in China products. Funny, Republicans hate socialism, yet have no problem at all with sending $$ to those countries for cheap labor, products, and 'junk'. Edited December 10, 2008 by 630land Quote Link to comment Share on other sites More sharing options...
RangerM Posted December 10, 2008 Share Posted December 10, 2008 Funny, Republicans hate socialism, yet have no problem at all with sending $$ to those countries for cheap labor, products, and 'junk'. Yes, of course. That's it. It's all the Republicans fault. Quote Link to comment Share on other sites More sharing options...
Ford Jellymoulds Posted December 10, 2008 Share Posted December 10, 2008 Yes, of course. That's it. It's all the Republicans fault. Gotta say l bet Bushie does not shop for best quality plastic Chinese made goods at Walmart, but he has no problem with flooding the US Chinese made best quality plastic products, killing more manufacturing jobs. 3-2-1 here comes Nicks frying pan Quote Link to comment Share on other sites More sharing options...
RangerM Posted December 10, 2008 Share Posted December 10, 2008 Gotta say l bet Bushie does not shop for best quality plastic Chinese made goods at Walmart, but he has no problem with flooding the US Chinese made best quality plastic products, killing more manufacturing jobs. 3-2-1 here comes Nicks frying pan Yeah, I'm sure you go around saying, "I'd rather be making rubber dog shit for a living". Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted December 10, 2008 Share Posted December 10, 2008 Yeah, I'm sure you go around saying, "I'd rather be making rubber dog shit for a living". :lol: Maverick can fly it out of Hong Kong! Quote Link to comment Share on other sites More sharing options...
whtstdhrse Posted December 10, 2008 Share Posted December 10, 2008 maybe they should put nascar in charge-oh wait Quote Link to comment Share on other sites More sharing options...
Ford Jellymoulds Posted December 10, 2008 Share Posted December 10, 2008 Yeah, I'm sure you go around saying, "I'd rather be making rubber dog shit for a living". US DEBT CLOCK You must buy a lot of Arab oil, Yota's, best quality Chinese plastic goods from Walmart & rubber dog shit then. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted December 10, 2008 Share Posted December 10, 2008 US DEBT CLOCK You must buy a lot of Arab oil, Yota's, best quality Chinese plastic goods from Walmart & rubber dog shit then. That's the spending decefit, not the trade defecit. They could be considered related in many ways though... Quote Link to comment Share on other sites More sharing options...
Critic Posted December 10, 2008 Share Posted December 10, 2008 What's a billion here or there, that's just chicken feed. Quote Link to comment Share on other sites More sharing options...
Versa-Tech Posted December 10, 2008 Share Posted December 10, 2008 What's a billion here or there, that's just chicken feed. Whoa that's trippy! Quote Link to comment Share on other sites More sharing options...
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