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Ford: A Success Story

November 7, 2009

On November 2, 2009 Ford announced a profit of about 1 billion dollars for the third quarter. This announcement is significant in the following ways:

  1. It was Ford’s comeback as a viable company after many years.
  2. Ford chose not to take a bailout from the Feds unlike GMC and Chrysler.
  3. Ford instead focused to spend on new products such as fusion and edge and for that they didn’t need government’s permission since they didn’t take a loan from them.
  4. Among the 3 Detroit carmakers, Ford offered the least discount/ incentives.

And all this when GMC and Chrysler are still struggling who took the bailout money. We might argue that those companies were in deeper trouble.

WOW!! Does that mean the US Taxpayers made risky investments after the financial meltdown??

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6 Comments leave one →
  1. November 8, 2009 12:23 AM

    Good post, Nitin on a timely issue.

  2. November 8, 2009 12:30 AM

    Thanks for the comment Ronele.

  3. tim permalink
    November 8, 2009 7:49 AM

    The US taxpayers are definitely on the hook for the risk, but i dont believe you can lay the blame of taking the risk at their feet.

    • November 8, 2009 8:25 AM

      Tim, I agree with you. The idea here was to remind “The people” or serve as a wake up call that legislative actions (bills)/ public policy have a direct impact on their lives. If on one hand Ford has done well, on the other side is CIT, the largest small business lender which took about 3 billion dollars in stimulus funds and filed for bankruptcy last week.

  4. Daniel Hunter permalink
    November 8, 2009 7:58 AM

    This is a great story Nitin. When the Great Depression occurred, the Federal Government did come in to provide aide. However, the mind set of Americans was different then. The help was not expected. Now when we get into small troubles, we expect the government to step in, even if at taxpayer expense. I believe we are trading our freedoms, freedoms that Americans have fought and died to acquire, for security. Ford needs to be publicly recognized for their responsible actions.

    “I do not know on what principles of reasoning it is that good men think the public ought to pay more for a thing than they would themselves if they wanted it.” –Thomas Jefferson

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