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Tag Archives: bailout

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Here’s to You, Ford, for NOT Failing Miserably

ford-original-logoAn excellent Forbes article recently explains that, though Ford is tossed into the “Big 3” when everyone is talking about failing and government loans, they certainly aren’t in dire straits. With a number of smart moves by Alan Mulally, the chief executive imported from Boeing a number of years ago Ford is still in a relatively strong position compared to GM and Chrysler. Mulally mortgaged much of Ford’s assets (for $24 billion), signed up credit lines two years ago, sold Jaguar, Land Rover, Aston Martin, some of Ford’s Mazda ownership in the last two years. All this was way ahead of the current economic tribulations. Was it foresight into the future economic woes? I have a feeling it was just good business and focusing on what was important to Ford. Having a great business model makes them recession-resistance. Read More »

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Bailout Blues: The Big 3’s Shock Therapy

With the recent approval of a House bill to provide $14 billion, the Senate remains in question as to whether the American auto makers will get their BAILOUT anytime this week. With this money comes the inevitability of Federal oversight in the guise of a “car czar” that would handle how the money is spent. Another possible action is the immediate removal of the Big 3 CEOs to introduce some fresh blood. Despite the constant reinforcement of many car people like Lee Iaccoca, I have come to the conclusion that infusion of new CEOs into the American auto industry is probably the best thing that could happen. This conclusion hasn’t been rash as I’m completely against the bailout. Why should the Federal government pick winners and losers? Adam Smiths “Invisible Hand” has worked pretty well in cleaning out the failures of inept (ex. Enron, Delta, Adelphia and others) and despite the inevitable financial pain, the economic principals of “shock therapy” have proven themselves time and time again to be true. Suffer in the short term instead of languishing for the next 10-15 years with constant pain. Simply put, the quicker you get to the bottom, the sooner you’ll start to see growth again. So, with my complete support of letting the Big 3 suffer, how can I be for ousting Wagoner, Nardelli and Mulally? Read More »

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The Bailout, Coming This January

This about sums it all up, doesn’t it?

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UAW Looses Mind, Asks for GM Board Seat in Return for “Concessions”

The UAW is likely to seek a seat on General Motors Corp.’s board and expects the automaker to offer another round of hourly buyout and retirement incentives next year in the event the union grants concessions to help the automaker win federal loans. Read More »