Ford has Concerns about Government Ownership, Competition

[mackinaw]

From today's Automotive News, article by Amy Wilson:

 

"With both General Motors and Chrysler LLC in bankruptcy, Ford Motor Co. is calling for the U.S. government to maintain a level playing field for all auto manufacturers.

 

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

 

"Some of the issues that Ford leaders are worried about include:

 

"The infusion of taxpayer dollars into GMAC, the former captive finance unit of GM now acting as a lender to both GM and Chrysler dealerships. The taxpayer money and GMAC's conversion to a bank holding company have helped lower GMAC's cost of capital. Meanwhile, Ford's captive finance unit has sworn off direct support from the U.S. Treasury and is challenged with higher borrowing costs.

 

"The effect of taxpayer support on the retail marketplace. Ford executives privately complain that GM and Chrysler have used government money to fund higher incentives that in turn distort retail sales.

 

"Ford executives are also worried about the health of Ford dealers who own GM and Chrysler franchises. GM wants to close around 2,000 dealerships and Chrysler has sent termination letters to 789 dealers.

 

Fire-sale pricing by closing dealerships also could hurt Ford sales in the near term, a period in which Ford is launching several new or redesigned vehicles.

 

"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."

 

Full article here:

 

http://www.autonews.com/article/20090601/ANA02/906019912

[blksn8k2]

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[BlackHorse]

I'm a Jeep owner, as I stated in another thread on this very topic. I like my Jeep, it's a great vehicle and it has been trouble free. But I bought my Jeep before Chrysler turned itself into a socialist puppet company as has GM. I will never again buy a Chrysler or GM product because of what Barak Obama has done with those once fine companies. I will buy Ford from now on. You can rest assured that there are a great many people who feel the same way. I think this move by Chrsysler and GM is going to cost them a lot more business than they realize. You can't be competitive with Ford if you aren't selling cars.

[Deanh]

I'm a Jeep owner, as I stated in another thread on this very topic. I like my Jeep, it's a great vehicle and it has been trouble free. But I bought my Jeep before Chrysler turned itself into a socialist puppet company as has GM. I will never again buy a Chrysler or GM product because of what Barak Obama has done with those once fine companies. I will buy Ford from now on. You can rest assured that there are a great many people who feel the same way. I think this move by Chrsysler and GM is going to cost them a lot more business than they realize. You can't be competitive with Ford if you aren't selling cars.

+1...Americans back winners....but they are also fickle as hell....sooner or later Gm and Dodge will once more be embraced....and the ills will be forgotten.....

[jpd80]

The government should allow the smooth transition of Ford Credit to a bank,

that would ease concerns about government backed GMAC 0% financing to GM buyers.

[silvrsvt]

sooner or later Gm and Dodge will once more be embraced....and the ills will be forgotten.....

 

what about all those buyers who where burned in the 1970/80/90's by those said companies? All this does is compound the image issue that they have....and to be honest Ford seems to have finally figured out away to put distance between its old image and new image with the press and maybe buyers now.