Ford - the alternative to making the deal with ...

[Tilted]

the devil.

Ford Drops Debt, Boosts Stock, Buys Breathing Room

They've had an easier time getting debt holders to swap debt for equity. Certainly, that is due in part to them being in better fiscal shape to begin with. But, it's probably also due in no small part to the fact that they resisted the temptation to make the same deal with the devil that GM and Chrysler made. Debt holders believe that the long term prospect for the value of Ford equity is better, because they aren't under the thumb of Washington.

 

[Crewdawg141]

Yup, and Gm is hosed and it will be de-listed from the DJIA.

 

[Larry Gude]

Yup, and Gm is hosed and it will be de-listed from the DJIA.

Not if they aren't allowed to.

 

[Tilted]

Ford Loss Narrower than Expected; Shares Jump

Ford released quarterly earnings this morning - quite a different situation than GM and Chrysler's. They lost about half of what was expected ($1.4 Billion), and their cash burn rate continues to fall. They are actually projecting profitability by 2011 - but I suspect they will be profitable by the 3rd quarter of 2010.

In sharp contrast with GM's announced plans to shut down production for 9 weeks this summer:

In response to that, Ford will increase production in the U.S. by 25 percent in the second quarter, (Alan Mulally) added.

The question is: Will our government let potential winners separate themselves from the losers, or will it devise a way to ration 'success' and equalize the fate of all of the industry's competitors?

Please stay out of it government. Some people have made better decisions than others, and thus their fates are and should be better than others. Don't suppress the efficacy of that dynamic - it is that which makes prosperity possible.