Tag: Ford Motor Co.

Amusing

Americans Deserve the Truth – The Ford Story

Pass this on. This was an editorial written by Jim Jackson who is from Elkins Fordland (a Ford Dealer) in Elkins, WV.

Intermountain Letter to the Editor- Elkins Fordland

Editor:

As I watch the coverage of the fate of the U.S. auto industry, one alarming and frustrating fact hits me right between the eyes. The fate of our nation’s economic survival is in the hands of some congressmen who are completely out of touch and act without knowledge of an industry that affects almost every person in our nation. The same lack of knowledge is shared with many journalists whom are irresponsible when influencing the opinion of millions of viewers. Senator Richard Shelby of Alabama has doomed the industry, calling it a dinosaur. No Mr. Shelby, you are the dinosaur, with ideas stuck in the 70s, 80s and 90s. You and the uninformed journalists and senators that hold onto myths that are not relevant in today’s world.

When you say that the Big Three build vehicles nobody wants to buy, you must have overlooked that GM outsold Toyota by about 1.2 million vehicles in the U.S. and Ford outsold Honda by 850,000 and Nissan by 1.2 million in the U.S. GM was the world’s No.1 automaker beating Toyota by 3,000 units. When you claim inferior quality comes from the Big Three, did you realize that Chevy makes the Malibu and Ford makes the Fusion that were both rated over the Camry and Accord by J.D. Power independent survey on initial quality? Did you bother to read the Consumer Report that rated Ford on par with good Japanese automakers? Did you realize Big Three’s gas guzzlers include the 33 mpg Malibu that beats the Accord. And for ‘09 Ford introduces the Hybrid Fusion whose 39 mpg is the best midsize, beating the Camry Hybrid. Ford’s Focus beats the Corolla and Chevy’s Cobalt beats the Civic.

When you ask how many times are we going to bail them out you must be referring to 1980. The only Big Three bailout was Chrysler, who paid back $1 billion, plus interest. GM and Ford have never received government aid. When you criticize the Big Three for building so many pickups, surely you’ve noticed the attempts Toyota and Nissan have made spending billions to try to get a piece of that pie. Perhaps it bothers you that for 31 straight years Ford’s F-Series has been the best selling vehicle. Ford and GM have dominated this market and when you see the new ‘09 F-150 you ll agree this won’t change soon. Did you realize that both GM and Ford offer more hybrid models than Nissan or Honda? Between 2005 and 2007, Ford alone has invested more than $22 billion in research and development of technologies such as Eco Boost, flex fuel, clean diesel, hybrids, plug in hybrids and hydrogen cars.

It’s 2008 and the quality of the vehicles coming out of Detroit is once again the best in the world. Perhaps Senator Shelby isn’t really that blind. Maybe he realizes the quality shift to American. Maybe it’s the fact that his state of Alabama has given so much to land factories from Honda, Hyundai and Mercedes Benz that he is more concerned about their continued growth than he is about the people of our country. Senator Shelby’s disdain for government subsidies is very hypocritical. In the early ‘90s he was the driving force behind a $253 million incentive package to Mercedes. Plus, Alabama agreed to purchase 2,500 vehicles from Mercedes. While the bridge loan the Big Three is requesting will be paid back, Alabama’s $180,000-plus per job was pure incentive. Senator Shelby, not only are you out of touch, you are a self-serving hypocrite, who is prepared to ruin our nation because of lack of knowledge and lack of due diligence in making your opinions and decisions.

After 9/11, the Detroit Three and Harley-Davidson gave $40 million-plus emergency vehicles to the recovery efforts. What was given to the 9/11 relief effort by the Asian and European Auto Manufactures? $0. Nada. Zip! We live in a world of free trade, world economy and we have not been able to produce products as cost efficiently. While the governments of other auto producing nations subsidize their automakers, our government may be ready to force its demise. While our automakers have paid union wages, benefits and legacy debt, our Asian competitors employ cheap labor. We are at an extreme disadvantage in production cost. Although many UAW concessions begin in 2010, many lawmakers think it’s not enough.

Some point the blame to corporate management. I would like to speak of Ford Motor Company. The company has streamlined by reducing our workforce by 51,000 since 2005, closing 17 plants and cutting expenses. Product and future product is excellent and the company is focused on one Ford. This is a company poised for success. Ford product quality and corporate management have improved light years since the nightmare of Jacques Nasser. Thank you Alan Mulally and the best auto company management team in the business.

The financial collapse caused by the secondary mortgage fiasco and the greed of Wall Street has led to a $700 billion bailout of the industry that created the problem. AIG spent nearly $1 million on three company excursions to lavish resorts and hunting destinations. Paulson is saying no to $250 billion foreclosure relief and the whole thing is a mess. So when the Big Three ask for 4 percent of that of the $700 billion, $25 billion to save the country’s largest industry, there is obviously opposition. But does it make sense to reward the culprits of the problem with $700 billion unconditionally, and ignore the victims?

As a Ford dealer, I feel our portion of the $25 billion will never be touched and is not necessary. Ford currently has $29 billion of liquidity. However, the effect of a bankruptcy by GM will hurt the suppliers we all do business with. A Chapter 11 bankruptcy by any manufacturer would cost retirees their health care and retirements. Chances are GM would recover from Chapter 11 with a better business plan with much less expense. So who foots the bill if GM or all three go Chapter 11? All that extra health care, unemployment, loss of tax base and some forgiven debt goes back to the taxpayer, us. With no chance of repayment, this would be much worse than a loan with the intent of repayment. So while it is debatable whether a loan or Chapter 11 is better for the Big Three, a $25 billion loan is definitely better for the taxpayers and the economy of our country.

So I’ll end where I began on the quality of the products of Detroit. Before you, Mr. or Ms. Journalist continue to misinform the American public and turn them against one of the great industries that helped build this nation, I must ask you one question. Before you, Mr. or Madam Congressman vote to end health care and retirement benefits for 1 million retirees, eliminate 2.5 million of our nation’s jobs, lose the technology that will lead us in the future and create an economic disaster including hundreds of billions of tax dollars lost, I ask this question not in the rhetorical sense. I ask it in the sincere, literal way. Can you tell me, have you driven a Ford lately?

Jim Jackson, Elkins Fordland

Fox News speaks with Elkins Fordland owner Jim Jackson about the “Auto bailout”.

Other

Ford Pulls its Weight Without Bailout Funds: Surpasses Toyota in May sales

“The people saying they don’t want to buy anything at General Motors are not mad at General Motors. They don’t want to patronize Obama. They don’t want to do anything to make Obama’s policies work! This is an untold story, by the way. Of course, the government-controlled media is not gonna report anything like this but there are a lot of people who are not going to buy from Chrysler or General Motors as long as it is perceived Barack Obama is running it, because people do not want his policy to work here because this is antithetical to the American economic way of life. The government does not own car companies; the government does not design cars, not in a country that works. So people aren’t going to buy products from companies that Obama runs.” ~ Rush Limbaugh

Amid bankruptcies and forecasts of Detroit doom, one of the Big Three is hanging tough. Ford tough.

Once defined by the revolutionary Model T, Ford is motoring on without federal bailouts, Treasury-led restructurings or bankruptcy judges.

Ford Motor Co.’s U.S. market share grew last month, and sales surpassed even mighty Toyota’s. Ford’s shares have outperformed those of Honda and Toyota over the past year. Shares of archrival General Motors Corp., now in bankruptcy, are nearly worthless.

Shareholders and analysts see pluses and minuses in Ford’s decision to steer clear of government interference.

“Ford [may] be able to prevail taking the high ground and not taking government money,” said John Chevedden of Redondo Beach, Calif., who owns 600 shares of Ford stock. Mr. Chevedden said he purchased the stock “at a dip,” so he hasn’t lost any money on his investment.

He called himself “cautiously hopeful” based on production increases and Ford’s upbeat annual report released last month. He thinks Ford will benefit from the downsizing of GM and Chrysler LLC – as its production increases are designed to do.

Mr. Chevedden said he was more concerned with the overall economy than with Ford.

“The concern is just about the market in general, whether it’s going to rebound or if people will just buy less cars,” he said.

Tom Whited, a financial adviser for Edward Jones Investments in Plymouth, Mich., said such uncertainties keep him from recommending Ford stock even though the shares have performed better than expected.

“There are so many question marks around the Detroit auto industry in general that I think there are better options,” he said.

Mr. Whited also worries that Ford will have difficulty competing with Chrysler and GM after they come out of their bankruptcies “debt free.”

The company’s decision to go it alone prompted shareholder Jason Kozlowski of Toledo, Ohio, to buy Ford stock three months ago.

“I’m thinking because they didn’t take the bailout money, because they decided to do their own thing, that they will eventually pull out of it,” he said. “It looks like they’re going to hold their own.”

Auto analyst Colin Langan of UBS, which does investment banking for Ford, agreed.

Mr. Langan said Ford will benefit in the long run by avoiding the involvement of the government and the United Auto Workers union in its restructuring, giving it more flexibility and the ability to focus on profits.

“I think [GM’s bankruptcy] is an opportunity for Ford to stand out from U.S. competitors,” Mr. Langan said.

Ford’s increasing global presence, as well as the scheduled U.S. arrival of new models like the Fiesta next year, bode well for the company’s future.

“I really looked at [Ford’s] prior turnarounds and elements in past successful turnarounds, and every turnaround has had a new product,” Mr. Langan said.

“I think there are definite, clear opportunities for Ford to gain market share.”

Indeed, Ford’s U.S. market share in May reached its highest level since 2006, rising to 17.4 percent from 15.2 percent a year ago. But Ford spokesman Bill Collins said GM’s bankruptcy has not affected Ford’s plans.

“Things have not changed in the way we’re running the business,” Mr. Collins said.

Ford’s domestic sales totaled 155,994 vehicles last month as its Fusion hybrid and Flex crossover models set sales records. Ford even outsold Japanese rival Toyota, which notched 135,661 U.S. sales. Ford’s May results were the best since July, when it sold 161,530 vehicles.

With investors still wary of stocks and especially shares of automakers, Ford’s common stock has surged from a low of $1.26 last year to close at a 52-week high of $6.41 on Tuesday. Ford shares, while virtually unchanged over the past year, have handily outperformed those of Japanese rivals Toyota and Honda, whose shares have fallen 24 percent and 18 percent, respectively.

Source…

Amusing

Ford Does Not Need a Government Bail Out


Screw General Motors and Chrysler, if you need a new car, go out and buy a Ford.

Ford does not need U.S. government loans: CEO

Ford Motor Co has enough liquidity to fund its restructuring plan and despite the deep downturn in auto sales still sees no need to ask for government loans, Chief Executive Alan Mulally said on Saturday.

“We don’t want to borrow any more money. We have sufficient liquidity to fund our transformation plan, which means our business is in a relatively good shape,” Mulally told reporters on the sidelines of the National Automobile Dealers Association convention.

Amusing

The Big 3 Bail-out Plan Includes a Pay Raise For Judges

So Congress gets its raise, the Judges get a raise, the Union Workers get paid the same even though their over priced contracts are causing the Auto companies to lose tens of billions of dollars.

And you, the American Taxpayer what do you get? Well, the bill of course. Merry Christmas!

America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves. ~ Abraham Lincoln

Pay raise for judges tucked into bailout plan

If the $14 billion bailout plan for U.S. automakers passes, it will help more than just Ford, Chrysler and General Motors. Federal judges would get a pay raise, as well.

The raise — labeled a cost of living adjustment — would bring U.S. District court judges up to par with members of Congress, who will receive an almost $5,000 boost on Jan. 1. District judges and lawmakers now earn $169,300 a year but are expected to be awarded a 2.8 percent raise next year, said Dick Carelli, a spokesman for the Administrative Office of the United States Courts.

Senate Majority Leader Harry Reid, D-Nev., insisted that the judicial pay raise go into the automaker loan measure, which is the only item of business on Congress’ lame-duck agenda.

Under ethics legislation enacted almost two decades ago, members of Congress get a cost of living raise automatically, but they have to vote to give judges an identical raise. Because the spending bill covering U.S. courts has not passed, the step is necessary if judges are going to get their raise.

Even with the raise, judge earn far less than lawyers at big firms, just as members of Congress make less than most lobbyists.

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