I suppose that we have to take what good news there is for American automakers. And today, for Ford, losing only 1.4B is good news. It lessens the likelihood that Ford will be seeking any kind of government loans and has sent Ford’s stock up to around $5.15 a share.
Ford, I hope, will continue on its path of building good cars that people want. A 1 billion dollar loss seems to me to be far better than flushing billions down the drain as a preface to a GM bankruptcy and a sale of Chrysler to Fiat for pennies.
I can’t wait for the new Fiat Viperped. It will look like the Chrysler Peapod, but with flames… Sad, the Viper was one of my favorite exotic cars. Perhaps someday–before the all vanish–I’ll be lucky enough to rent a Viper in Dallas and experience true American muscle.
I admire Ford for refusing the bailout money and looked at their cars and might have bought one last month, except for my wife’s antipathy for Ford. They are making good cars and doing the right things to bring themselves back to profitability.
I wish GM had done what Ford decided to do instead of taking the bailout money.
Ford CEO Alan Mullaly cited some things on the positive side of the ledger according to a great article by Edmunds Auto Observer’s Michelle Krebs.
Positives mentioned by the CEO in Krebs’ article included gaining market with new products; slowing operating-related cash outflows; reducing outstanding debt; lowering structural costs; and reaching new agreements with the United Auto Workers union.
Most analysts were forecasting Ford to lose a little more than twice the 1.4 billion. I hope Ford picks up a lot of share from the members of the Big 3 that took the money.
Right or wrong, I refused to even look at their products when I was car shopping a few weeks ago.