Good News for Capitalists

[Cool Beans]

Looks like not taking the bail out money was a wise decision. I hope Ford takes full advantage of Government Motors follies. While they cut back, Ford is putting it back in gear! And its funny they sold a record number of hybrids, and yet those numbers were still far surpassed by the good ol' F-series Pick Up truck!!! I hope Ford, keeps making what America wants, hybrids for the green types and trucks for the farmers and men of America!

May Ford Sales Highest Since 2008

DETROIT — Ford Motor Co. said Tuesday its U.S. sales fell 24 percent in May from a year ago, but sales rose 20 percent from April as the automaker continues to gain market share from its competitors now under bankruptcy protection.

Dearborn-based Ford said it sold 161,197 cars and light trucks in the U.S. last month, the highest figure since July 2008. Sales of the Ford Fusion rose 9.4 percent as the company began selling new 2010 models of the midsize sedan along with a hybrid version. Ford said it sold a record number Fusions, 19,786 in May, which was surpassed only by sales of its F-series pickup trucks.

Ford says its better cars are driving sales and its increasing market share, not GM and Chrysler's filings for bankruptcy protection. The company said it plans to increase production levels in the second quarter by 10,000 vehicles, to 445,000, in contrast to its U.S. competitors that are cutting production and idling plants this summer.

Ford also said it plans to build 460,000 vehicles in the third quarter, 42,000 more than in the third quarter of 2008.

Automakers are facing the worst U.S. sales climate in 27 years. The companies and analysts are expecting are a rebound as the consumer confidence improves, but there's concern that heavy incentives to are inflating sales.

Ford said it decreased incentive spending in May but is launching a new program, "Drive the Ford Difference," this month, in which the company will pay three months of car payments, up to $2,100. Zero-percent financing will also be available on some vehicles.

[PaulS]

So taking or not taking the bail out $ was only a marketing decision and had nothing to do w/the financials of the company?

[Cool Beans]

Yes, by not taking it, they retained full control of the company to actually increase production instead of being forced to sell off and downsize their company. Looks like GM is selling or sold Hummer to the Chinese today.

[RIJIMMY]

I believe the point is that Ford is not strapped by government and beauracratic oversight which can allow business people to do what business people do.
What did the bailout accomplish for GM and Chrysler....nothing!!! They shuld ahve gone bankrupt and restructered months ago and would be in a better postiion today. They could have hired the best talent and turned things around. What bright, ambitous, creative mastermind would work for GM now? How long before your bonus is plastered all over the media and you lose the money you were promised?

[PaulS]

The bailout allowed them to stay in business. If GMs cars are as good/popular as Fords, they wouldn't have needed the $. GM is selling Hummer b/c they need $. Where are the bright, creative people who work for GM going to go - they can't go to Chrysler, Ford prob. isn't going to hire them. Mich. has some of the highest unemploy. in the country.

[Cool Beans]

GM and Chrysler should have filed bankruptcy without the bailout and without government control, then restructured on their own and they would have already been back in the game with the company as they wanted it, not the way Obama wants it. The argument that the bailout let them stay in business longer is ridiculous, it would be similar to the credit card company doubling your limit to "help" you get by. All it did was dig them a bigger and deeper hole that they now have to attempt to get out of. They could done it before the bailout, but I don't think GM will be profitable for at least 10 years if then. I think it may be a smart move if Ford were to "make a big issue" out of hiring a lot of the GM guys and saving a few towns in Michigan. "Ford is making Good on the American Dream" "When you buy Ford, you help keep the Dream Alive" could be 2 of their catch phrases.

[buckman]

I won't buy a Chevy or Dodge anymore. Screw me once shame on you, screw me twice shame on me. This is getting beyond stupid.

[spence]

I don't think you can compare the three. Ford went into this recession with a much stronger balance sheet than either GM or Chrysler.

The assertion that Ford is now successful because they didn't take bailout money doesn't jibe with basic accounting.

-spence

[Cool Beans]

Would someone please cast Spence a lifeline, I think he is drowning in "Kool Aid".

I can see him struggling out there, and every time he pops up, it's to ask for more Kool Aid.

I am beginning to believe it will take one of those "de-programers" that were popular to hep kids drawn into those 70s cults.

maybe this guy can help him http://www.rickross.com/reference/de...ramming19.html

[JohnR]

Originally Posted by spence

I don't think you can compare the three. Ford went into this recession with a much stronger balance sheet than either GM or Chrysler.

The assertion that Ford is now successful because they didn't take bailout money doesn't jibe with basic accounting.

-spence

I think Ford is more successful now and not needing bailout / restructuring is because;

A - That balance sheet mentioned above

B - They were able to get out in front of this and successfully prepare for this. (GM tried but was unsucessful, Chysler was already firesold and why I don't see mentioned anywhere that they were "purchsed" last year from Mercedes by an investment group.

C - They were somewhat prepared for the gas crisis with some decent products on the economical side like the Focus (we're on our 2nd one now) and the Fusion. GM has the awful Cobalt and the last Malibu schtunk (new one is intriguing). Dodge / Chrysler . Saturn was middle of the road cars with good support / CSI, again, getting better but too late.

Interesting article in WIRED about the opportunity for Detroit to get back in the game.

Hey Spence - where are you going to get your SAABs now?

[Cool Beans]

Originally Posted by spence

I don't think you can compare the three. Ford went into this recession with a much stronger balance sheet than either GM or Chrysler.

The assertion that Ford is now successful because they didn't take bailout money doesn't jibe with basic accounting.

-spence

If GM would have filed bankruptcy in 2008 instead of wasting billions in our money, they would already be over this and still own their company! WHEN YOU ARE IN DEBT, THE LAST THING YOU NEED IS MORE DEBT! The fact that you believe taking all this money from us, in any way helped GM is disturbing. They cut their own nuts off and handed them to Obama. Now they have virtually no control of their company, they have no capital, and they have lost millions of loyal customers. GM used to mean something to America, now they are just an embarrassment to America. They take all this $$ and then have to sell to the Chinese, like Chrysler begging Fiat....... I own 3 GM vehicles and they will be my last ones. Ford has earned my future business.

I read on the Japanese news this morning about how Ford was the last hope for the American auto industry. They even call GM Government Motors now...... it's a sad day in Detroit...........

[spence]

Originally Posted by JohnR

Hey Spence - where are you going to get your SAABs now?

Will probably stick with another Lexus, my wife has the Saab.

-spence

[FishermanTim]

Just think of all the Hummer owners that will be needing repairs adn replacement parts in the future. I wonder what kind of quality they'll get with their "tanks"?
Is the Hummer the next Delorean?
Maybe they can make a "Back to the Future" kind of movie with a Hummer, except I don't think they woul have enough gas to get up to 88 mph.

[scottw]

Originally Posted by FishermanTim

Just think of all the Hummer owners that will be needing repairs adn replacement parts in the future. I wonder what kind of quality they'll get with their "tanks"?
Is the Hummer the next Delorean?
Maybe they can make a "Back to the Future" kind of movie with a Hummer, except I don't think they woul have enough gas to get up to 88 mph.

flux capacitor...the wave of the future


hey, maybe you'll be able to buy inexpensive Hummers at Walmart