Ford Won’t Seek Federal Loans Unless World ‘Implodes’

[Omaha Steve]

Source: Bloomberg

By Keith Naughton and Hugo Miller

Jan. 11 -- Ford Motor Co., alone among U.S. automakers in forgoing federal aid to stay in business, plans to “keep going on our own,” Chairman William Clay Ford Jr. said.

The second-biggest U.S. automaker will ask for government loans only if “the world implodes as we know it,” Bill Ford told reporters today at the North American International Auto Show in Detroit.

His comments affirmed Ford’s strategy of relying on $23 billion in borrowing from late 2006, not U.S. assistance, to weather losses while shutting plants and adding new models. General Motors Corp. and Chrysler LLC got $4 billion each after saying they might be out of operating cash by this month.

Ford has gross cash of less than $15 billion, Chief Financial Officer Lewis Booth told reporters. The fourth-quarter cash burn was smaller than in the previous three months, when Dearborn, Michigan-based Ford used up $7.7 billion, Booth said.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=atkG4JVnH.r8&refer=home

[Duckhunter935]

1. Good for them

[varkam]

2. Kinda wanna makes me buy a Lincoln...

if the last one I had wasn't a lemon, that is.

[Baby Snooks]

5. They're all lemons at this point....

I don't know anyone who has bought a new car in the past eight years that didn't end up buying a lemon. Most seem to last only as long as the limited warranty is in effect. And then the day after the limited warranty expires, they become lemons. Although time bomb would be more accurate. People learned quickly to buy the "extended warranty" although even those don't cover everything and what good is a warranty if your car is at the dealers half the time and you're driving a loaner car that also breaks down and has to be towed?

As for Ford, well, maybe they just don't want to be sold off which is probably what will happen to everyone else. The automakers, you see, were the last holdouts with regard to "multi-nationalism." What a word. Multi-nationalism. A catchword for the new world order based on oligarchy. Which has become the new world disorder.

[ogneopasno]

6. OK, IME, you're talking out your ass. I've bought three new Fords since 2000 and each one has been

awesome. I did just fine with them without extended warranties. All three were Fords, all three were awesome.

Edited to add "IME."

[DRoseDARs]

9. My 1992 Explorer (bought used in 2000) still runs fine after 17 years.

Has issues now and then, but she's 17 years old. That's to be expected of ANY vehicle on the road that long. My mom drives a '97 Expedition and my stepdad drives her 1982 Bronco. For "lemons" we sure have put a lot of miles on them over the past 8-12-27 years.

[boomerbust]

8. Hey Snookums

Were are you from? Alabama?

[AndyTiedye]

13. My Escape Hybrid is Still Doing Fine

[SpiralHawk]

3. "Implodes? Wow - nifty idea." - Republicon Homelanders

"Wish we'd thought of it while our beloved FAIL-Freak heros Commander AWOL Bush and VP Dickie 'Five Military Deferments' Cheney were at the top of their Republicon Homelander anti-American game. We could have added it to our Shock & Awe scorecard of Republicon FAIL FREAKERY. Sneer - smirk."

- Republicon Homelanders

[2Design]

4. well - I might have to see if there is a ford like the chevy hhr or pt crusier n/t

[happyslug]

10. Come 2010 maybe, Ford is planning (again) to bring in some of its small European cars

The other times, the subsequent decline in Gasoline prices killed those small cars (and the fact that dealers wanted to sell large cars and SUVs do to their higher profit margins).

The Ford Fusion Hybrid:
http://www.motortrend.com/roadtests/sedans/112_0812_2010_ford_fusion_hybrid_first_drive/index.html

List of Ford Cars:
http://www.ford.com/vehicles/vehicle-showroom#/ford

I notice the proposed mini-cars to be imported in by ford (or produced by Ford in the US, the Decisions has not yet been made) are NOT in the above list. For example Ford's UK Cite clearly shows the Ford Ka, which is expected to be imported into the US next year:
Ford's UK Cite:
http://www.ford.com/vehicles/vehicle-showroom#/ford

The Ford KA, this is expected to keep its European name in the US (Through it is called mini-compact In Europe):

http://www.ford.co.uk/Cars

The Ford Fiesta, only sold in Europe, gets 65 mpg:

http://www.businessweek.com/magazine/content/08_37/b4099060491065.htm?chan=autos_autos+--+lifestyle+subindex+page_top+stories

Through a modified one with a trunk seems to be scheduled for the US in 2010:
http://www.motortrend.com/features/auto_news/2008/112_0806_2010_ford_fiesta/index.html

Please note it may be called the Verve in the US, the platform was completely designed for 2008, but the Fiesta name was kept for Europe for it had a good name in Europe. The Fiesta name is NOT considered a hot name for the US market so the Verve name may be the one used:
http://en.wikipedia.org/wiki/Ford_Fiesta

Another car that Ford may import is the Fusion, through it probably will get a new name for Ford uses the Name Fusion for its mid-size car sold in the US. The European Fusion is a stretched version of the Fiesta (and may be called the "Ecosport" the name it is called when sold in South America):
http://en.wikipedia.org/wiki/Ford_Fusion_(European)


I suspect Ford will NOT use the Fusion name in the US, for it has been using it for its mid-size car since 2005:
http://en.wikipedia.org/wiki/Ford_Fusion_(Americas)

In 2007 one person saw a Mazda Verisa near the Ford Headquarters and wondered if Ford wanted to sell it under the Ford name:
http://jalopnik.com/cars/spy-photos/spy-photos-ford-minicar-to-be-verisa-254493.php
http://jalopnik.com/photogallery/verisa/1756957
http://jalopnik.com/photogallery/verisa/1756949

Ford is looking better and better, if it can survive till 2010 (And it looks like it can):

[Alcibiades]

7. The world has been imploding for some time

Reminds me of those folks who invested in sophisticated derivatives that would only go bad if there was another great depression. They lost their asses.

[high density]

11. Their new Fusion and Taurus give me hope for that company

Now I just wish they'd completely revamp the Focus... They just keep slapping new (and IMO, progressively uglier) body panels on the same car.

[Neshanic]

12. Hi, Clay here, I thought that we should define "implode".

When I said if "the world implodes as we know it", that can be taken out of context. My view of the world "as we know it" is very different from other people's perceptions of the world, so that has to be taken into consideration.

Please do not be upset if you see me asking for cash in 90 days, as you know "my world" is different from yours.

Just a note to clear things up.

See you soon!