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Ford makes statement on GM bankruptcy, hopes for level playing field
1 June 2009, 6:58 pm
Filed under: Ford, GM
While all eyes are on General Motors, its Chapter 11 bankruptcy filing and the additional $30 billion in loans the automaker will receive from the US government, FoMoCo doesn't want the Obama administration to forget the Blue Oval is restructuring without the help of the federal government. And the Blue Oval issued a press release asking for a level playing field going forward.
Ford mentioned that it would like to see a quick resolution to GM's bankruptcy filing, and it made a point to remind the White House that a healthy supply base is equally important. Then, Ford got right to the point with its biggest issue.
"We look forward to working with the Obama administration to ensure that the government's majority ownership of GM will not change the industry's competitive dynamics and that a level playing field will be maintained." Since the new GM will be owned principally by the US government, Ford has reason to be concerned. And with nearly $20 billion in government loans that may never be repaid, a level playing field could already be out of the question. Ford has also lost billions over the past couple years, and since it mortgaged all its assets to steer clear of federal assistance, the Dearborn automaker will have to repay every penny or risk losing everything. Hit the jump to read Ford's release.
[Image Source: Bill Pugliano/Getty]Continue reading Ford makes statement on GM bankruptcy, hopes for level playing field
Ford makes statement on GM bankruptcy, hopes for level playing field originally appeared on Autoblog on Mon, 01 Jun 2009 18:58:00 EST. Please see our terms for use of feeds.
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Source: Autoblog
1 June 2009, 6:58 pm
Filed under: Ford, GM
While all eyes are on General Motors, its Chapter 11 bankruptcy filing and the additional $30 billion in loans the automaker will receive from the US government, FoMoCo doesn't want the Obama administration to forget the Blue Oval is restructuring without the help of the federal government. And the Blue Oval issued a press release asking for a level playing field going forward.
Ford mentioned that it would like to see a quick resolution to GM's bankruptcy filing, and it made a point to remind the White House that a healthy supply base is equally important. Then, Ford got right to the point with its biggest issue.
"We look forward to working with the Obama administration to ensure that the government's majority ownership of GM will not change the industry's competitive dynamics and that a level playing field will be maintained." Since the new GM will be owned principally by the US government, Ford has reason to be concerned. And with nearly $20 billion in government loans that may never be repaid, a level playing field could already be out of the question. Ford has also lost billions over the past couple years, and since it mortgaged all its assets to steer clear of federal assistance, the Dearborn automaker will have to repay every penny or risk losing everything. Hit the jump to read Ford's release.
[Image Source: Bill Pugliano/Getty]Continue reading Ford makes statement on GM bankruptcy, hopes for level playing field
Ford makes statement on GM bankruptcy, hopes for level playing field originally appeared on Autoblog on Mon, 01 Jun 2009 18:58:00 EST. Please see our terms for use of feeds.
Permalink | Email this | Comments
Source: Autoblog