A Ford TV ad slams competitors for accepting bailout funds, even though the company’s CEO lobbied because that the bill. The agency — the only among the large Three no to obtain a bailout — fear a collapse of GM and Chrysler at the time would have hurt service providers and, in turn, Ford itself. Ford Chief executive Officer Alan R. Mulally likewise asked Congress for a “credit line” of up to $9 billion in case the economic climate worsened.
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In other words, Ford was for government bailouts prior to it was against them.
Although Ford go not need money indigenous the $80 exchange rate bailout program, Ford did receive $5.9 exchange rate in government loans in 2009 to retool its production plants to produce an ext fuel-efficient cars, and also the agency lobbied for and also benefited native the cash-for-clunkers regimen — contradictory to the ad’s testimonial that Ford is “standing on your own.”
‘Real Ford Owner’ Opposes Bailouts, CEO Doesn’t
The ad — i beg your pardon is called “Press Conference: Chris” — features a person identified as “a real Ford owner” that answers concerns from the “media.” Karen Hampton, a Ford spokeswoman, told united state it began airing country on Sept. 1 as component of a larger campaign featuring Ford customers talk without a script about their cars.
In this ad, “Chris” is inquiry why the bought a Ford. He does no wax poetic around advanced engineering, superior taking care of or sleek inner — staples of auto commercials. The talks about government bailouts.
Chris: ns wasn’t going come buy another car the was bailed the end by our government. Ns was going to buy from a manufacturer that’s standing on their own: win, lose, or draw. That’s what America is around is taking the possibility to succeed and also understanding as soon as you fail that you gotta choose yourself up and go back to work. Ford is that firm for me.
It’s true the Ford was no “bailed out by ours government,” as chris says. However, the company’s president and also CEO testified that his agency would endure if congress did not pass regulation to provide financial assistance to the ailing auto industry. He urged conference to pass the bill.
Mulally, Dec. 5, 2008: In particular, the fallen of one or both of our domestic rivals would threaten Ford because we have actually 80 percent overlap in caterer networks and nearly 25 percent that Ford’s peak dealers likewise own GM and Chrysler franchises.
He likewise asked conference to authorize a credit transaction line of up to $9 billion for Ford in situation the economic situation got worse and the agency needed it.
Mulally, Dec. 5, 2008: In addition to our plan, we are likewise here this day to request assistance for the industry. In the near-term, Ford does not require access to a government bridge loan. However, us request a credit transaction line of $9 billion together a vital backstop or safeguard against worsening conditions as us drive transformational readjust in ours company.
The Automotive market Financing regime — which was produced under the Troubled heritage Relief regime — detailed $79.69 billion to GM, GMAC and Chrysler. For this reason far, they have actually paid earlier a little much more than half of the money, or about $40 billion, according to Treasury’s day-to-day report because that Sept. 16 ~ above TARP funds.
Ford did not receive any money under AIFP, however that doesn’t typical it didn’t get any federal assistance.
In a Jan. 30, 2009, report ~ above the bailout program, the Congressional research study Service provided that Ford “is counting on $5 billion from the DOE loan regime to support a $14 billion arrangement to reorient the lineup toward an ext fuel-efficient vehicles.” on June 23, 2009, the department of power announced the would administer $5.9 exchange rate to Ford “to change factories throughout Illinois, Kentucky, Michigan, Missouri, and Ohio to create 13 an ext fuel efficient models.”
In a business arrangement submitted to congress in December 2008, Ford touted its $14 billion arrangement for fuel-efficient cars as a an essential part of its initiative to revolve the company around — noting the a huge piece that the resources was comes from the DOE. The company’s organization plan also urged congress to pass legislation to provide “incentives for consumer to trade in older vehicles and move to more fuel-efficient vehicles.” around six months later — on June 24, 2009 — president Obama signed the consumer Assistance come Recycle and Save plot that ended up being known together the cash-for-clunkers program. A room of transportation report (table 10) said more than 90,000 Fords were purchased under the cash-for-clunkers regime — 2nd only come Toyota — as of December 2009.
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Hampton seek to draw a difference in between the bailout program and also other government programs. “The federal government programs we participate in are to promote efforts that are useful to the whole nation,” she said. “The work-related we execute on fuel efficiency benefits everyone. The bailout that our competitors was an excellent for the industry and the country economy, however we room proud that us didn’t have to use priceless taxpayer money.”
We take no position on the merits of any of the federal programs geared to help U.S. Automakers. This lot is clear: Ford when supported a bailout program that it now denigrates.