How the Auto Bailout Is Punishing Ford

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Everybody has to remember that Bill clinton when he was president decided to bring in this free trade agreement to the foreign companies that in return 10 years later put every american automotive company in a bind. George bush didnt help either and Obama is just making everything else worse. With the oil companies raising prices on fuel for no reason since we have so much on reserve and stock, maybe we could afford new cars and the fuel to put in them. Then maybe gm and chrysler wouldnt need a bailout or have to do layoffs. Maybe the low class and middle class workers need to teach these excutives and oil presidents a lesson and put them out on the streets with no money and car and see how they survive.

Blue collar worker of TX 11:11PM January 30, 2010

Okay we all have our thoughts about ford and gm and what not I am the owner of a 1999 pontiac grandam se 4 door 124,000 miles on it currently that was given to me by a family member... Before that I owned a 1994 ford escort station wagon which I still own and amazed its still running! with no major engine work it has over 300,000 miles on it... It still runs great! but I have also owned a dodge caravan and A jaguar. on my pontiac when I got it I thought everything was taken care of not true the spark plugs were original from the factory the fuel filter factory and battery factory and it ran for 10 YEARS! withought any of it being changed It still runs but when I found out that it hadnt been changed I opned that baby up and changed it I done it myself not that hard but the manual in the thing was all i needed.... It runs brandnew!I have not had any trouble wih the fords or pontiac which i am sad to see goo. But my thing is its not the car companys really its the cars themselves.. the way they are treated and they way they are driven I say lets keep gm and ford american and get rid of the foreign cars! thats why gm needed the bail out. Another reason why alot of them needed the bail out was because people still had a great running car from these companys and did not see the need to buy new but its the car companys fault because they built more than what there was a demand for! What happned to the days when a person wanted to buy a new car they had to order it had it made and then delivered... Now there is just such a surplus which lead to debt!

scott of FL 3:26PM January 30, 2010

Ford is the oldest of the three brands and it was the last man standing.

I grew up riding in Colony Park station wagons (with fake wood side panels). We have a 2001 Mustang and a 2003 Focus in the driveway now.

I have owned Honda, Toyota, Oldsmobile, Buick, Chevy, Volvo and Dodge vehicles. A lot of them were fun new. Honda was especially disappointing with the fragile body panels and fast wearing interior fabric. The power windows on the Chevys broke frequently. The Dodge cars were good for about 40K miles between serious mechanical problems/being stranded on the roadside again. The Buick and Oldsmobile cars were very good to me.

It was hard to see Oldsmobile go. I don't care about Saturn. Pontiac has such a serious brand identity problem that killing it is smart. Hummer has the same problem.

In the end Ford won. Toyota is taking a huge beating that will impact all of the Japanese car brands to some degree. Toyota is not too good to fail. Honda makes lemon cars too.

The big difference between Honda and Ford is this: Ford cares what each customer experiences after purchasing their cars. Look at the paint on a 15 year old Mustang next to an Accord of the same vintage. Yeah, the Accord looks like an old snot rag with peeling clear coat and white faded splotches everywhere. The Mustang will still take a polish and shine in the sun.

I will keep buying Ford and Ford only because they make Mustangs, their cars hold up well over time, and they are priced competitively. Much as I would love to see Ford take 100% market share its not right for the country.

Somehow we have to do better than the UK did with DeLorean. Perhaps we can accelerate development of alternative fuel vehicles with control over the car companies. It would be the right thing to do.

Yeah, if you take the last decade as a litmus test then Ford is soon to be the only US car maker.

Ford works for me of CA 3:17AM January 30, 2010

Achtung Mein fellow Amerikan.

Thomas , Thomas Thomas ... You Must Must Must do better than crying that to state the facts as they exist, such as (a) GM and Chrysler losing marketshare for the last 30 years, and that the (b) bankers are extolled as villains while the (c) Union Workers get to wear the Eternal White Hat are simple cliche'.

My Mother drives a Chrysler 300, I drive a Mercury Sable [that I love DEARLY with 190k on the clock], but I do know a superior product when I see one or drive one.

And it does not take the American with Blinders On Attitude to see one either.

I am a BIG fan of Ford, and my mother's car is one of the best I have ever driven, but that does not mean the company is worth a Tinker's Damn.

There are plenty of people here who have not driven the Europeans or the Japanese cars and cannot make an informed comparison.

I am not one of them.

I have owned BMW and a Mercedes and Intend to own a few more.

As far as I am concerned the Jury Is Still out on Ford because they are not a favourite of the Obama Administration since they are clearly not playing Bailout ball.

But I will make you this prediction...

When Obama is Gone in three more years ... so is the lifeline to GM and the Money we gave them to support that Ponzi scheme with the Unions on One side and the Execs on the other while they put the screws to the dealers and empty the company's vault while the government man makes sure the last guy out the door turns out the lights when they leave.

When a Sensible administration comes to power, the Shingle over more than a few doors will change.

Saving a Bad Bank or a Badly Run Car Company from default is nothing more than saving the sign over the door and a political payoff.

The American System is based on making a profit, and not building cars or running a bank because the government decides that you are a Busywork Outlet.

When these Companies finally Do fail and are let fall, lots of people and other companies will be there to pick up their pieces and make good companies out of the pieces.

Taxpayer money should never have been given to them, and I have relatives in Flint and Saginaw Michigan whose entire careers have been spent at Fisher Body.

No one is [not even them] are owed lifetime support for working for any company they did not make for themselves, and only a Socialist [a polite term for Communist] would see that any differently.

I support family and American product as much as anyone living in this nation, but America in my view has never stood for Socialist until lately, and should not be standing for Stupid no matter Who works there or the name on the sign.

And trust me, you can find Lexus, Mercedes and BMW at the same price as Cadillac and Lincoln.

They are not the same cars and your statement requires people to compare a Bicycle To A Goldfish.

They are not the same cars, the same weight or size ... but some are clearly better cars regardless of that subjective and Limited criteria.

Say Goodnight Gracie

Ariel F. Lovelace of AR 10:02AM January 26, 2010

You are RIGHT ON THE MARK with you comments! I agree 100%!!!! I am 44, not quite a "boomer" and at the high end of the "gen y'ers." My first car was a 69 VW. Great car. Overhauled the motor on the side of the road once. Easy to work on. First new vehicle was an 85 Ford Ranger. Loved it. Never a major problem in over 150000 miles. Now I drive a Chrysler-built Jeep. Have owned it for 10 years now, 145,000 miles, so I can't complain about reliability. But the heater core is busted and needs replacing. On my old Ranger, no biggie. Took me about 30 minutes to change it out. Not on the Jeep. First step is to REMOVE THE FREAKING STEERING WHEEL! You have to take the ENTIRE freaking dash out of the thing to replace a $60 heater core!! And don't get me started on my wife's Dodge Grand Caravan. To replace an alternator, first thing you do is remove the windshield wipers. Yep, you read that right! With the economy in the dump right now, I can't afford to trade, but when I can we are going back to Ford and aren't going to look back. I say if Chrysler and GM go, good riddance!

Anthony of KY 11:28PM January 14, 2010

I can't say I agree with al or even halfl Jay of CA had to say but for the most part its quite appropriately well considered... IMHO

Rchi of WA 7:56PM January 12, 2010

Where is a good place to sale my old wrecked car? Please help me by sugesting some sites or companies.

roMdutuarodap of AL 3:13PM January 05, 2010

Yes, you have read my title correctly. Now think about this, Scion and Kia are marketing cars geared toward Gen Y. What two companies are posting profits and gains? Toyota (parent of Scion) and Hyundai (parent of Kia). Ford is doing well because Gen Y remembers when their parents drove Fords and learned how to drive a Ford. Then Gen Y went truck crazy (I am speaking of the older members of Gen Y). We went out and found this little truck that should have done the trick called the Chevy S-10/GMC Sonoma; we also bought our cheap sportscars (Camaro and Mustangs). Gen Y remembers having to spend half their minimum wage paycheck fixing the Chevys. Gen Y also remembers the Chrysler minivans that Mom drove (and the issues that went with them).

So what happens now? Well here's a little timeline Gen Y has grown up. We now have families and are buying newer cars (most of Gen Y has been driving cars over 10 years old now) so we're in the market for new cars. Sorry GM you screwed us early on and we haven't forgotten. Chrysler that was ME pushing mom's minivan to a safe spot (did you think we'd forget pushing and praying that girl from my math class wasn't passing by).

With GM and Chrylser explained now comes Ford. Well, oddly the most popular Fords for Gen Y were the Ranger, Taurus, F150 and Taurus. Heck there were even some gargantuan Crown Vics in the picture. Guess what, they worked BETTER than expected, which is why Gen Y is more loyal to Ford than GM. Take most GM vehicles, they are less American than a Toyota. The LaCrosse (designed in China, what an anorexic Chinese guy knows what a larger American likes in a car?), the Camaro (designed in Australia) and their plethora of gas guzzling cars built on ancient technology (how many variable valve induction engines does GM have?). Again GM you have screwed Gen Y again, just remember next time we're even older and you can't turn to our grand parents to bail you out! Now Toyota and Honda BUILD far more cars in America than GM and Chrysler.

If Americans want to keep AMERICANS (not Canadians, Mexicans, Australians, Koreans or Indians) employed stop looking at the badge, open the door and read where the car is made. Honda, Nissan, Subaru, Toyota, Mercedes, BMW and even Hyundai build the vast majority of their vehicles in AMERICA (just look at the country of origin). The reality is that AMERICAN people do not build bad cars, the companies pawn bad designs. GM's goal was to get you to buy a new car every six years. Chrysler started the "dealer only" service fad. Ford tried that, but realized that AMERICANS do like to work on their own cars (most newer Fords are even easier to work on than the cars of yester-year).

I think there does exist anti-Americans, they go by the names of Chrysler and GM! BUILD THEM HERE, WE CAN DESIGN THEM TO LAST. Just ask Honda, Toyota, Nissan, Mercedes, Subaru, BMW and Hyundai just how crappy American workmanship is!

Jay of CA 7:46PM January 04, 2010

I have owned 1 Buick LaSabre 267,000 I now own a F350 Ford with 518,000 and runing as good as when i bought it,and there is no rust on this truck. Try to find those older Toyata around,good luck there in the bone yard.Yes I'am a proud American and will continue to buy GM and Ford products.

Paul Exelby of MI 7:12PM January 04, 2010

I've heard all that for years, and watched many friends buy into the slogans. But the bottom line is that (individual vehicles excepted, of course) American manufacturers have been making cars that are generally less reliable, and less appealing than their competitors. For years Detroit has been claiming their cars are 'just as good': complete nonsense. After this many years of promises, few people believe domestic automakers anymore. People have been slowly migrating toward other choices, and the market-share figures prove it. Perhaps with the automakers recent woes they will finally learn to drop the silly excuses, improve quality and become truly competitive again.

Ther'e nothing "Un-American" about buying an import brand, especially since many of them are made/assembled in the US. On the contrary, it is VERY American to encourage competition and innovation by refusing to spend your hard-earned money on products which are inferior, or just plain unappealing (Pontiac Aztec, anyone?)

SM of CA 6:35PM January 04, 2010

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Rick Newman

Rick Newman

The global economy is mysterious, even scary. Chief Business Correspondent Rick Newman connects the dots. In addition to his writing for U.S. News, Rick is the co-author of two books: Firefight: Inside the Battle to Save the Pentagon on 9/11, and Bury Us Upside Down: The Misty Pilots and the Secret Battle for the Ho Chi Minh Trail.


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