is the government going to bail Ford motor company out like they did Chrysler many years ago?

Question

If Ford is on the ropes, why are they building a new dealership in my home town?...I don't get it..

Answer 1

They are still selling cars but have low sales. A new dealership is probably a franchise ( a private person opening it up). They need the additional sale now more than ever!

They are having financial troubles but are far from shutting down. They will merge before they will go under.

The reason you hear so much about them in the news is due to the amount of money they are losing and the number of job affected. It is figured that every auto job loss effects 7 others due to the loss of that one automotive employees purchasing power. If they shut down a plant, the local economy is effected - Grocery stores, restuarants, repair shops, housing, insurance, etc.

The auto industry is also a major economic indicator. Last year, all automotive companies sold 7,550,000 cars for a total of $188,750,000,000. That is based on the average of $25,000 per vehicle.

Answer 2

Probably not.

For one the contruction in your home town means nothing, all except a few dealerships are franchise dealers, so Ford itself has nothing to do with the reason that dealership is going up.

Also, is your old town a new boomtown? Is it growing fast?

Likelyhood is that either an entrepenuer saw a town that for one reason or another would buy Ford vehicles if the dealer was there. Or he/she is just someone who just likes Ford vehicles and now has the money to live the dream or something.

As to whether or not Ford will be bailed out: it is unlikely.

The reason Chrysler was bailed out was a complex amount of politics. At the time, Unions had almost every politician in their back pocket. Bribes (ahem, "fees") and such were common, and no politician would risk putting union workers out of work, it could mean their next election.

Now the landscape has changed: due to corporations finally paying decent wages for educated workers, corruption within the union movement (including but not limited to the turn-off that union leaders make millions a year, "protecting" workers rights), and a general negative view of unions in young people, its less likely that politicians will bail out Ford.

OF course, Ford could come up with some kick backs of some sort, but probably not. In its desperate situation, it'd be hard to make anything without being noticed.

Also, years ago the "buy american" and "american made" propaganda carried much more weight, if it was still minimal. Today, the only car in NASCAR that is built in America is the Toyota Camry (Chevrolet Malibu and Ford Fusion are in Canada, Dodge Charger is in Mexico). Many foreign companies build their cars here, even BMW and Mercedes build their most popular models in South Carolina.

Honda makes a great deal of cars here, as does Toyota. The thoughtless idea that foreign automakers have all their stock owned by foreigners is also wrong: most is owned by big multinational finance firms and funds, and the world capital for those is New York City.

So no, Capitol Hill has little to no reason to bail out Ford. It'd "save jobs," but every politician who said that would have to face the fact that even the Chrysler deal failed in the end: Chrysler is now owned by Daihmler, and part of the company Daihmler-Chrysler.

Answer 3

The government did not bail out Chrysler it just gave them a loan Guarantee. What turned Chrysler around was the Bailout it received from the UAW by agreeing to a temporary cut in pay and The K car Dodge Aries and Plymouth Reliant with it's quality, fuel economy,and popularity was an instant hit with car buyers. Lee Iaccoca played a big role in delivering Autos that Americans wanted for example he brought back the Convertible and was the first to bring the mini van to market. Also he took no salary until Chrysler turned a profit.

Answer 4

3 thoughts....

Gee, I hope the governent does something. The first thing they could do is force the foreign car makers to pay the same import taxes and fees that american auto makers are forced to pay in asian countries. Regardless of where these things are "put together" or "built"... the "company" is based is Japan, China, etc. Which makes the vehicle an import.

2nd thought = are you sure the dealership that is being built is OWNED by Ford Motor Company? Simply because there is a big Ford sign outside, doesn't mean that it is a corporate owned dealership. There are far more privately owned "franchise" dealers around that those owned by "Ford"

3rd though = Will for get out of its financial problems by NOT selling cars? Couldn't they sell MORE cars by building another dealership? Thats like you or me saying...."We're running low on money in ye ole checking account. I can save money by quiting my job and thus not spending money on clothes and toothpaste. Perfect. Now I've saved money."

Answer 5

Read up on the Chrysler bail out. Lee Iacocca turned Chrysler around after the government helped them out and repaid the government back in full. Think Ford could do that?

Answer 6

There will not be a bailout for Ford or any other automaker.
Bush made that much clear. We should still respect that the American automakers and their suppliers employ one out of every 7 persons in the U.S. A lot of Ford's problems are
self inflicted. Free trade would help though. In many cases
companies like Ford are competing against not just foreign automakers, but foreign automakers backed by their government.
i.e. competing against countries.Ford is likely building a dealership in your area because it makes business sense, to move into areas that are growing, and get out of those that are not. Many older inner cities with dealerships will be closing or consolidating. Or at least those with declining populations.
Ford has a new C.E.O. that came over from Boeing to help them out. Boeing is a highly respected company that has returned to greatness under his leadership. Changes are abound, not all good, but do not count them out.

Answer 7

No! Don't bail out Ford. do you think that bailing out a company that has no intention of helping the US economy is wise? They build less and less cars here and more in Mexico. Look at US part content on the window sticker. Do you honestly believe that 50% us part content in a car made in Mexico helps anyone here except the stockholders and management at Ford? Look at what they build and the quality of the materials used. I say let them go down in flames just like they are with all of the union employees and franchised dealers that they are letting go down in flames as we speak. FORD DESERVES what is getting. They built big ugly suv's and ignored cars altogether. Now that they have NO fuel efficient good looking vehicle there they are begging for a handout. I say NOT OUT OF MY POCKET! Right now I work at a Lincoln dealer and have for many years but now the owner of the dealer is being pushed by Ford to close down so they can let the Ford dealer down the street be a Ford Lincoln Mercury dealer. So when you get down to it should we help Ford?

Answer 8

You bet they will,
Ford is just waiting for the liberals to be President. The Repubs will want to much in return. The Dems will just write them a check. Do you really think that there are no more politicians taking Bribes...ahem FEES!
Give Hillary a Ford and she will bail you out......

Answer 9

ACtually GM is making money again, so would be stupid to send out of business, and Ford has not yet gone into the hole, but is the only American company that is still sinking.

Answer 10

it's like this....the government will not allow a company like ford to go out of business because of the number of people they employ.....yes the same happened for chrysler in the 80's.....but think of this.....gm is also like 5 billion in the hole and you don't see them going out of business