quote:
Originally posted by gbrk:
I speak strictly for myself here but I'm impressed with Ford's decision not to accept Government money. If folks will remember GM was contemplating buying out Chrysler just before they sought Government money which made me skeptical of their claims. For my part even if Chrysler and GM make it now my first choice in an automobile will be FORD with out question because they did it the right way.
Ford was lucky because they basically bet the company in 2006 when credit was available. They still have been losing money but they were slated to become profitable again right when the bottom fell out last year.
As for the GM purchasing Chrysler, that came out because Cerberus was basically going to force them into taking it. A year or two before Cerberus purchased Chrysler they purchased controlling interest in GMAC, and when it became obvious that the Chrysler purchase was a bad move they allegedly threatened to stop financing loans for GM vehicles. The only reason it didn't happen because they knew it wasn't going to pass gov approval.
This leads into GM's problem. For the past couple of years, be it Fiat, Delphi, UAW or Cerberus every one has been hitting them up for cash, most of them in ways they couldn't avoid due to past contracts. They may would have been alright for another year or so before the shakedown they experienced for money late last year.