1agswitchin4lanes said:
sts7049 said:
you know ford took billions in loans from the govt too during the crisis, right?
Ford did accept a loan from Uncle Sam. But it was based upon using it for research into government mandated technology to produce more fuel efficient vehicles. It was not to be used to bail out the company. Interest rates on the money is so low that it is cheaper to make interest payments than it is to pay back the loan. Meanwhile they can use the money for its intended purpose.
Alan Mullally, saw it coming before it all hit. Mortgaged the hell out of everything they had and strapped down spending and did super tight accounting of all spending, reigned in the losses and within a few years Ford made a turnaround to profitability. Sadly not sure whats goign to happen these days since the file cabinet guy doesnt GAF about cars.
Partially true. Mullaly is/was a great CEO and made some great decisions. But let's be honest here - he's no Ray Dalio and he did not foresee the crisis to come.
The reality is Ford made it through the crisis by, in some ways, shear dumb luck. Mulally put JLR on the sales block before the crisis hit - had he not done that, Ford would not have had the liquidity to sustain the crisis and would've also been bailed out.
GM and Chrysler had a cash crunch and Ford had Tata money. That about sums it up.