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Ford May Lag Behind An Obama-Run GM

From Bloomberg:

Ford May Flip to Laggard From Leader If GM Improves

By Keith Naughton

March 31 (Bloomberg) — Ford Motor Co., the only U.S. automaker not taking federal aid, could lose its competitive edge if President Barack Obama is successful in slimming down General Motors Corp. with lower labor costs, debt and dealers.

Obama gave GM 60 days to come up with a new strategy to cut costs with its union, slash debt with bondholders and reduce dealers and brands. If GM does all that, it may have significantly lower costs than Ford, said Lexington, Massachusetts-based auto analyst John Wolkonowicz of IHS Global Insight.

“This really pulled the rug out from under Ford,” said Wolkonowicz, a former Ford product planner. “The government wants to have GM survive as a leaner and greener company and Ford is going to need further restructuring in order to compete.”

Ford has been viewed by analysts and investors as the healthiest among the Detroit Three. It is the only U.S. automaker to secure concessions from the United Auto Workers union, which Ford said will get its labor costs competitive with Toyota Motor Corp.’s by 2011. It also is making progress in reducing $25.8 billion in debt by as much as 44 percent.

Now Obama is asking GM to go beyond the gains Ford has made in labor costs and debt reduction. The administration has raised the prospect of putting GM through a so-called quick rinse bankruptcy of as few as 30 days so that it can tear up contracts with car dealers to reduce a glut of stores and brands.

‘Now What?’

“When all is said and done, you could have Ford standing at the government’s door saying, ‘Now what do I do?’” said consultant Laurie Harbour, president of Harbour-Felax Group in Southfield, Michigan. Ford Chief Executive Officer Alan Mulally “has done all the right things, but it could all turn negative if GM gets in a competitive situation that’s dramatically different.” …

This article is a real hoot on several levels.

But it sounds like the author really thinks Mr. Obama is going to solve GM’s problems with one wave of his magic wand.

And that soon Ford will be regretting that it too isn’t being run by the Federal Government.

Simply hilarious.

This article was posted by Steve on Tuesday, March 31st, 2009. Comments are currently closed.

18 Responses to “Ford May Lag Behind An Obama-Run GM”

  1. Rusty Shackleford says:

    Wonder what he’ll be saying in a year or two? With headlines that read:

    “GM Sales Lag Behind Tricycle Maker In Taiwan”

    “GM Can’t Give Em Away”

    “Green Cars Fail”


    “Customers Storm GM Dealers Due To $6 Gal Gas”

    “Government Mandate Makes GM Happy”

    Additionally, and frighteningly, there’s a very telling line in the report about Obama wanting a “quick-rinse” bankruptcy. It screams loudly about the desire to usurp US law and do quick end-runs around the law or ignoring the law altogether. The mark of a true dictator.

  2. Liberals Demise says:

    Mr. Naughton is over medicating himself if he thinks that Der Furher will take GM and make it a solvent company. Me thinks that Ken is a cheerleader for the Socialist take over of the Capitalist system of America. The simple fact that Ford refused a hand out from Taxpayers and Capital Hill must have the “NEO-COMS” (I like this title) in the O’blomy “Department of Rape and Pillage” pissed!!
    Get ready because the next sound you hear will be the government grinder going after Ford.

    An example has to be made here and Ford will feel the full hit of the “HAMMER & SICKLE”.

  3. pdsand says:

    They’re desperate to get Ford on board, because as long as they hold out and keep making the F-150 and the Expedition, then the government can’t force Americans to buy the new Obama/Government Motors lawn mower-mobiles.

    • pdsand says:

      Well, I guess I should say, they can always *force* Americans to buy them if they get draconian with the fuel standards and such, but that would look ugly. It’s much more convenient if it juuussstt so happens that the lawn mowers are the only cars available.

    • Rusty Shackleford says:

      Here’s how I see it.

      >Attempts to get Ford on board with “correct thinking”
      >If that happens, then expect to see a twofold attack
      >Huge import taxes
      >huge taxes on gasoline, “for the betterment of the people”

      The masterplan being to force Americans to behave properly, the way he sees it and to discourage free-markets.

      However, nature, and economics, detests a vacuum. So, when he tries to push on one end of the balloon, the other end gets bigger.

      He is unaware of this, and is too arrogant to realize that the people…the wonderful, clever, creative people of America, will figure out a way to beat him at his own game.

      However, if he IS aware of this, he will try to block any and all gaps in his plan. That will cause more anger amongst the masses and, after a fashion, the whole thing will blow up in his face.

      Americans, above all else, hate being told what to do. I think it’s in our DNA. And whether you’re a conservative or a liberal….the bottom line is he’s gonna make traveling by car more expensive one way or the other. And conservative or liberal, you will find a way to keep your money in your pocket. If that means driving a lot less…then so be it. If it means anything that saves you the most money, that is what will happen. And the inherent, basic flaw that Obama has NOT figured out yet, is that his plan will COST gobs of money.

      He’ll be sitting there…head in hands wondering why Americans won’t buy his $40,000 uber-green vehicles. He won’t listen when he’s told “they’re too expensive”, “there’s not enough range”, or even “they’re damned UGLY”

      Oh no…The great and powerful Ob knows better than you. YOU must buy a GREEN car so that he can SHOW THE WORLD he was RIGHT and SMARTER than you. So he’ll do what he does best and get back on the campaign trail and be the CAR SALESMAN that he really is.

      I was sick of this guy after 5 minutes last year when I first heard of him. You can imagine how I feel about him now. And yet…he never…..shuts…..up.

  4. Reality Bytes says:

    According to Lee Iacocca, Henry Ford would never have him for dinner because “the man thought mixing with Presbyterians was unheard of, much less an Italian.”

    Given their reluctance to meet with Obama’s terms is symptomatic – maybe have even saved the company.

    PS: The only way GM survives is if it looses even more money than it is now with Washington – sorry our tax payer dollars paying for it.

    PSS; Tell you what, if GM file cptr 11, I’LL BUY ONE OF THEIR CARS!! Come on guys. Give me a reason to pick up one of those Caddie V’s, a ZR1 or a G8 GXP. Otherwise, it’s gonna have to be a Ford.

  5. proreason says:

    The article could be correct.

    – Expect soon to see all government vehicles purchased from GM and Chrylser
    – Expect soon to see tax rebates for buying gubament cars
    – Expect soon to see Ford attacked daily for all sorts of reasons

    After all, Ford has refused to be compliant to the Obamy whip……and that’s not “fair”, is it?

    • Liberals Demise says:

      Dare I say it, PR………..
      ……..by not being compliant to the Massas’ whip, “FORD” is racist!!

    • Colonel1961 says:

      Of course they are – just like that girl from Law and Order – racists!!

  6. Colonel1961 says:

    ‘F’ closed at $2.82 last Friday and has taken some wild fluctuations yesterday and today – down to about $2.69 a few moments ago…

    Now dingleBarry is stealing money from me!! Let GM fail and ‘F’ will be worth $15.00!

  7. A Mad Pole says:

    Comming soon to the U.S.A: “Fiat 126p”, “Fiat 125”, “Trabant”, “Zaporozec”, “Wartburg”, “Syrena 104, 105” (google them up, you will get a kick out of it).

    All I can say is, go Ford, wasn’t big fan of them (their European cars are pure garbage) but at least they have a pair.

  8. gipper says:

    Coming soon to a Chevrolet showroom near you: the 2010 Chevy BHO!

    – 2.4 L DOHC (Democrat Official Hankering for Communism) engine
    – Six airbags (Hillary, Reid, Pelosi, Frank, Dodd, Waters, and Schumer)
    – Oversized side view mirrors (ears)

    Can’t think of more features. Can any of you?

    • Liberals Demise says:

      Available in a GOP model with the “trunk” in the front but not until the old “trunk” is cleaned out!!

    • spiffyw says:

      A suspension with ‘air pumping hedge fund shocks’ managers who can blow them selves up and let them down when they want.
      With an anti-truth transmission that takes power from one side and gives it to the other cause they are slipping all the time and styrofoam lug nuts .

    • MinnesotaRush says:

      Tires filled with political hot air .. never can go flat!

      An o-blah-blah GPS .. you can go over the cliff; but it’ll tell you it’s the right direction and to move swiftly!

  9. polemos says:

    I want to buy a Ford so bad now. My wife loves her Toyota van however…

    Psst hey Ford make a Van my wife will love and i will buy a new one every year.

  10. freeleep says:


  11. MinnesotaRush says:

    “Ford Motor Co., the only U.S. automaker not taking federal aid, could lose its competitive edge if President Barack Obama is successful in slimming down General Motors Corp.”

    Yeah, right! This o-blah-blah bag of air probably can’t change a tire much less run anything that has to be fiscally prudent.

    If he’s so GD brilliant, why doesn’t he just do it for them for the sake of all us Americans. After all, he “won”. Why make them .. us .. wait? Just fix it o-blah-blah. (p.s. the billions you dingbats in DC thru at this little problem didn’t do much of anything)

    What a ridiculous charade and one that the MSM is either pandering to, or they are just as stupid and inept.

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