Posted on 11/02/2009 11:59:56 AM PST by pansgold
C4C
Since “Cash For Clunkers” applied to Ford, GM and Chrysler. Why did Ford Motor Company post a ONE BILLION DOLLAR 3rd quarter PROFIT and GM and Chrysler post losses?
It couldn’t be the autos since all models are about the same size, design and price. I believe it was the consumer buying more Fords as a REWARD for not taking TARP money and remaining a private company. The more units sold, the more profit.
Consumer votes have been cast. Ford, GM and Chrysler have gone their separate ways. Now when GM and Chrysler look up they see the gutter and that’s about as low as they can get. Ford Stock has gone from $1.26/share to almost 8 bucks today and climbing. GM and Chrysler stock is where? (insert flushing sound here)
Well that’s just not fair that Ford should be doing so much better than GM and Chrysler... I know! Let’s take their profit and split it with the other two auto-makers... That would be fair!!
Don’t laugh.. I’m sure someone in the Obama Administration is thinking it...
The Baraqqis need to keep GM and Chrysler alive until Nov 2012.
And they’re gonna use your tax money to do it, as much as they need to print.
Ford has a tough road ahead of it.
They’re competing with the world’s automakers and the US Government.
I think it was because Ford dealers have been aggressively marketing automobiles, not because consumers are rewarding Ford Motor Company and certainly not because of the quality of their vehicles.
I agree about the quality however that BILLION came from somewhere. More cars sold equals more profits unless Ford’s profit marging is 10,000 times better than GM and Chrysler per unit sold.
The government is the reason I wouldn't buy from GM or Chrysler.
I won’t either. I now drive a GMC van and a Ford Mustang and have plans to keep both but when the time comes, It’s a FORD for me.
IIRC, there’s a US law on the books about government not competing with businesses..................
There is a definite goodwill boost to Ford. Despite the headwind of continuing to pay interest on $25 billion in debt that their rivals do not face, they are more profitable than either. All of them have been cutting costs, Ford cut deep enough that it increased profit even on lower sales. Their lower sales weren't as much lower as they feared based on projections earlier this year, because goodwill buyers sent more of their "clunkers" buys to Ford. Ford gained market share dramatically over the summer, and 2 of its vehicles were in the clunkers top 10. (Most in the list were foreign makes).
Yeah, It's right after the law that says bondholders are higher on the bankruptcy creditors priority list than union benefits.
I also couldn’t help but notice every cable channel now carrys GM ads for “try one for 30 days”. I’d say even with that agressive ad campaign by GM, they still posted a loss.
Chrysler and GM = Public Option
Consumers overwhelmingly reject Public Option when it comes to autos.
Chrysler and GM get jillions in taxpayers subsidies and still can’t compete on a playing field tilted in their favor.
But. It. Will. Be. Different. With. Healthcare. TrustUs.
I wouldn’t discount renewed passion in the dealer force either. What Obama and the Party did to GM and Chrysler dealers who were both profitable and conservative was simply evil and illegal.
Ford knows they have their back to the wall, at least everyone except the FORD auto workers themselves. They are still rejecting deals that the union has laid before them that are equal to the GM/Chrysler deals.
CEO Obammy must be green with envy...A Congressional investigation is needed!
Part of the reason is typical gov’t thinking.
GM & Chrysler were shut down for 2 months during their bankruptcy. They built no cars and had already slowed production prior to entering bankruptcy.
GM & Chrysler had very few vehicles on their lots when the CARS program went into effect (typical gov’t).
Therefore, GM & Chrysler sold all the smaller cars they could, but they just didn’t have enough on the lots to meet the demand.
If the gov’t REALLY wanted to help GM & Chrysler and REALLY wanted taxpayer money to be repaid, they would have made sure GM & Chrysler had time to build smaller cars and get them on the lots before the CARS program went into effect.
Let’s not forget that part of Ford’s $1 billion profit is OUR TAX MONEY!!!!!!!
I know plenty of people whom I have talked to about buying a new car (tax advantage this year) and almost to a person the have said they would NOT by a GM or Chrysler because of the government takeover of the companies. They feel they won’t be around to honor the warranty claims if it becomes necessary. Not saying they will be all buying FORD because most have said they will buy foreign.
One of our local Ford dealers had a billboard recently with a Ford logo and
“Buy a Ford. Drive a Ford. Say NO to Government Motors.”
plus the name of the dealership.
If my only choice is between a Ford and a foreign car, I guess I will be forced to buy a foreign car. Too bad.
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