Incredible editorial, Ford Dealer

[Luna Sea 5]

Maybe I shouldn't post this, but what the hell..


Incredible editorial from a Ford Dealer in the Pittsburgh Region….
 a "Letter to the Editor" from Elkins Fordland.

Editor:
As I watch the coverage of the fate of the U.S. aut o industry, one alarming and frustrating fact hits me right between the eyes. The fate of our nation's economic survival is in the hands of some congressmen who are completely out of touch and act without knowledge of an industry that affects almost every person in our nation. The same lack of knowledge is shared with many journalists whom are irresponsible when influencing the opinion of millions of viewers.
 
Sen. Richard Shelby of Alabama has doomed the industry, calling it a dinosaur. No Mr. Shelby, you  are the dinosaur, with ideas stuck in the '70s, '80s and '90s. You and the uninformed journalist and senators that hold onto myths that are not relevant in today's world.
When you say that the Big Three build vehicles nobody wants to buy, you must have overlooked that GM outsold Toyota by about 1.2 million vehicles in the U.S. and Ford outsold Honda by 850,000 and Nissan by 1.2 million in the U.S. GM was the world's No. 1 automaker beating Toyota by 3,000 units.
 
When you claim inferior quality comes from the Big Three, did you realize that Chevy makes the Malibu and Ford makes the Fusion that were both rated over the Camry and Accord by J.D. Power independent survey on initial quality? Did you bother to read the Consumer Report that rated Ford on par with good Japanese automakers.
Did you realize Big Three's gas guzzlers include the 33 mpg Malibu that beats the Accord. And for '09 Ford introduces the Hybrid Fusion whose 39 mpg is the best midsize, beating the Camry Hybrid. Ford's Focus beats the Corolla and Chevy's Cobalt beats the Civic.
 
When you ask how many times are we g oing to bail them out you must be referring to 1980. The only Big Three bailout was Chrysler, who paid back $1 billion, plus interest. GM and Ford have never received government aid.
When you criticize the Big Three for building so many pickups, surely you've noticed the attempts Toyota and Nissan have made spending billions to try to get a piece of that pie. Perhaps it bothers you that for 31 straight years Ford's F-Series has been the best selling vehicle. Ford and GM have dominated this market and when you see the new '09 F-150 you'll agree this won't change soon.
 
Did you realize that both GM and Ford offer more hybrid models than Nissan or Honda. Between 2005 and 2007, Ford alone has invested more than $22 billion in research and development of technologies such as Eco Boost, flex fuel, clean diesel, hybrids, plug in hybrids and hydrogen cars.
It's 2008 and the quality of the vehicles coming out of Detroit are once again the best in the world.

Perhaps Sen. Shelby isn't really that blind. Maybe he realizes the quality shift  to American. Maybe it's the fact that his state of Alabama has given so much to land factories from Honda, Hyundai and Mercedes Benz that he is more concerned about their continued growth than he is about the people of our country. Sen. Shelby's disdain for "government subsidies" is very hypocritical. In the early '90s he was the driving force behind a $253 million incentive package to Mercedes. Plus, Alabama agreed to purchase 2,500 vehicles from Mercedes. While the bridge loan the Big Three is requesting will be paid back, Alabama's $180,000-plus per job was pure incentive. Sen. Shelby, not only are you out of touch, you are a self-serving hypocrite, who is prepared to ruin our nation because of lack of knowledge and lack of due diligence in making your opinions and decisions.
 
After 9/11, the Detroit Three and Harley Davidson gave $40 million-plus emergency vehicles to the recovery efforts. What was given to the 9/11 relief effort by the Asian and European Auto Manufactures? $0 Nada. Zip!
We live in a world of free trade, world economy and we have not been able to produce products as cost efficiently. While the governments of other auto producing nations subsidize their automakers, our govern ment may be ready to force its demise. While our automakers have paid  union wages, benefits and legacy debt, our Asian competitors employ cheap labor. We are at an extreme disadvantage in production cost. Although many UAW concessions begin in 2010, many lawmakers think it's not enough.
 
Some point the blame to corporate management. I would like to speak of Ford Motor Co. The company has streamlined by reducing our workforce by 51,000 since 2005, closing 17 plants and cutting expenses. Product and future product is excellent and the company is focused on one Ford. This is a company poised for success. Ford product quality and corporate management have improved light years since the nightmare of Jacques Nasser. Thank you Alan Mulally and the best auto company management team in the business.
 
The financial collapse caused by the secondary mortgage fiasco and the greed of Wall Street has led to a $700 billion bailout of the industry that created the problem. AIG spent nearly $1 million on three company excursions to lavish resorts and hunting destinations. Paulson is saying no to $250 billion foreclosure relief and the whole thing is a mess. So when the Big Three ask for 4 percent of that of the $700 billion, $25 billion to save the country's largest industry, there is obviously oppositions. But d oes it make sense to reward the culprits of the problem with $700 billion unconditionally, and ignore the victims?
 
As a Ford dealer, I feel our portion of the $25 billion will never be touched and is not necessary. Ford currently has $29 billion of liquidity. However, the effect of a bankruptcy by GM will hurt the suppliers we all do business with. A Chapter 11 bankruptcy by any manufacture would cost retirees their health care and retirements. Chances are GM would recover from Chapter 11 with a better business plan with much less expense. So who foots the bill if GM or all three go Chapter 11? All that extra health care, unemployment, loss of tax base and some forgiven debt goes back to the taxpayer, us. With no chance of repayment, this would be much worse than a loan with the intent of repayment.  
So while it is debatable whether a loan or Chapter 11 is better for the Big Three, a $25 billion loan is definitely better for the taxpayers and the economy of our country.
So I'll end where I began on the quality of the products of Detroit. Before you, Mr. or Ms. Journalist continue to misinform the American public and turn them against one of the great industries that helped build this nation, I must ask you one question. Before you, Mr. or Madam Congressman vote to end health care and retirement benefits for 1 million retirees, eliminate 2.5 million of our nation's jobs, lose the technology that will lead us in the future and create an economic disaster including hundreds of billions of tax dollars lost, I ask this question not in the rhetorical sense. I ask it in the sincere, literal way. Can you tell me, have you driven a Ford lately?
 
Jim Jackson
Elkins

[Fishin Dude]

Very well said.     <'((((><

[wb]

I have driven a Ford lately, they make a fine truck.

However the costs are too high for the balance of their business model

they have remained too high for too many years

in business if you can't make a profit then you go out

God Bless America

[Reckless]

 Well said! What I find with this bailout not passing is the ones that opposed it and their reasons. What did they get in return from  Toyota and the others companies to oppose it?
 I mean what the hell we have governors trying to sell senate seats!!

[mgm]

So with all of those +'s why can't they make money! 


 

[Luna Sea 5]

The big 3 did over extend themselves.  There sales would be much higher, but the preception of the American people is that they make junk, but facts and numbers state that they don't make junk.

When Ford was on top, they chose to buy other things, such as partial shares in other vehicles, and they even bought shares in hertz.  Everything they had made money when the economy was good.  Now that the economy is hurting, everything starts hurting as well.

The same reason why Ford bought shares in other things helped increase there profit, but when things start to fall, all those extra areas also fall, which makes the fall more devastating. 

[Bucktail]

By Louise Nordstrom and Malin Rising, The Associated Press

STOCKHOLM — The Swedish government on Thursday unveiled a 28 billion kronor ($3.4 billion) support package for the nation's ailing auto industry but insisted it won't buy Volvo or Saab from their U.S. owners.

The plan offers credit guarantees, emergency loans and research funds to boost companies in what's called the "Swedish automotive cluster," the center-right government said.

It was announced just hours after the U.S. House of Representatives approved a bill to get $15 billion in emergency loans to the struggling U.S. auto industry.

Democrats and the White House hoped the bill could be enacted by week's end, but it is jeopardized by opposition from Republicans in the Senate.

Carmakers Volvo and Saab have appealed to the Swedish government for support because of the financial woes of their U.S. owners, Ford Motor (F) and General Motors (GM), which are focusing on saving their American brands

Powerful labor unions have also pressured the government to save Sweden's auto industry, which since June has shed about 10,000 jobs, or 7% of its workers.

The government said its support package is needed to safeguard "the continued success of the Swedish automotive industry," even if the industry's crisis deepens. It also called for quicker development of green vehicles.

The plan, which needs approval by lawmakers, includes a maximum of 20 billion kronor ($2.5 billion) in credit guarantees to automotive companies, and up to 5 billion kronor ($614 million) in rescue loans to bail out companies in crisis. The government said it would also earmark 3 billion kronor ($368 million) for automotive research and development.

Asked at a news conference whether the government could guarantee the survival of Volvo and Saab, Finance Minister Anders Borg said that is not its responsibility.

"The owners are responsible for the survival," Borg said. "We lay the foundations so that the Swedish automotive cluster has very good conditions to develop."

Ford has said it intends to offload Volvo, by either selling it or spinning it off into a separate company, while GM said it is conducting an "expedited and strategic review" of Saab.

The Swedish government reiterated it's not interested in buying the two brands and that the measures were based on discussions with the "U.S. automotive industry and conclusions drawn by current or any new owners."

Corporate and union leaders welcomed the plan.

"We've talked all autumn about how important the vehicle industry is for Sweden, and so we have to see this as a victory," said Michael Blohm, a union representative at Volvo Cars in the company's hometown, Göteborg.

Volvo Cars spokeswoman Maria Bohlin said the move showed Swedish politicians are willing to fight to save Swedish jobs.

The government said the plan is in line with the proposals in the European Commission's economic recovery plan under which companies can raise loans in the European Investment Bank. The EIB has promised to lend Europe's auto industry 16 billion euros ($21 billion) for the development of greener solutions and for production.

Copyright 2008 The Associated Press. All rights reserved.

[Bucktail]

Fri Dec 12, 2008 7:54am EST

TOKYO (Reuters) - Toyota Motor Corp said on Friday that a big bankruptcy in the U.S. auto industry would worsen an already severe business environment, adding it hoped for a solution to avoid such a scenario.

"The U.S. auto market is shrinking rapidly," Japan's top automaker said in a statement. "A major bankruptcy would exacerbate an already difficult environment for Toyota and the industry. We hope to avoid this situation."

Earlier, a proposed bailout of Detroit's General Motors Corp, Chrysler and Ford Motor Co failed in the U.S. Senate, raising the specter of an industry collapse and sending automaker shares tanking in Asia.

(Reporting by Chang-Ran Kim)

© Thomson Reuters 2008 All rights reserved

[Luna Sea 5]

This is true, even our competitor will hurt due to this problem.

[mckee17]

Its been reported that GM sold 9.7 million cars worldwide in 2007 and lost 38.7 billion dollars. Toyota sold 9.7 million cars worldwide and made 17.7 billion dollars. Why the disparity???

[Luna Sea 5]

Its been reported that GM sold 9.7 million cars worldwide in 2007 and lost 38.7 billion dollars. Toyota sold 9.7 million cars worldwide and made 17.7 billion dollars. Why the disparity???

GM, like Ford.. if they profit from one end, they are losing from another.  Example.. cars sold equals profit.. but Ford also owns Lincoln, Jag, Merc, volvo, etc..  So if Ford is successful, but they are failing with there other products, means they don't make a profit.  In this particular case, larger isn't better.

Now in the past when things were good, Ford was making profit on ALL there products, which is then true profit.

The reason why Ford is in better financial shape then the others is because.. if they fail, they have these other products to sell off.

[ped579]

I think it would of been better if the automobile companies would of went in a different direction and maybe bought out say a steel mill to make all the steel products themselves or produce the plastic parts they need for a larger part of today's cars or even electronic companies that supply the needed computers used in our cars today and well into the future.

Drop the foreign interests and concentrate on bettering America.  Put our workers back to work God knows we need the open job market.