Ford Executive: Automaker Doesn't Need Bailout
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All Things Considered, While General Motors and Chrysler may face structured bankruptcy, Ford has yet to ask for any government bailout funds.
William Clay Ford Jr., executive chairman of Ford Motor Co., says that car sales still are not where they need to be. Car sales for the Detroit Three — Chrysler, GM and Ford — are down more than 40 percent.
"The good news for Ford is that our market share has been going up and up each month," Ford tells host Melissa Block. He says what's really needed is "a program to stimulate sales for the entire industry."
Rep. Betty Sutton (D-OH) introduced the CARS Act in March as a way to modernize the U.S. auto fleet. The bill would provide consumers with a $3,000 to $5,000 incentive to trade in older cars to buy more fuel-efficient cars.
Ford says he is enthusiastic about the idea. "It clearly stimulates the economy, and it gets the consumer into the showroom and gets them buying again. But importantly — and this is what I particularly like about it — it really helps the environment quite a bit in two respects."
He says it takes an older, less fuel-efficient vehicle off the road and replaces it with a vehicle that is likely to have twice the fuel economy. And, he says, "the older cars tend to be much more polluting. And if you get them off the road and get a newer car with the newest technology, you're helping [reduce] C02 emissions, too."
Ford says similar programs are already working in Germany and France, and many other countries are interested in the idea.
GM, Chrysler Bankruptcy Impact
If GM or Chrysler goes bankrupt, what impact will this have on Ford?
"It's the great unknown in terms of what the impact is on us because there are so many ways it could happen," Ford says.
"It could get very messy. Therefore, no matter what happens to any of our competitors, the fact that we have a new UAW [United Auto Workers] agreement, we have a new health care agreement, we've taken steps to restructure our debt, and we've invested very heavily in green technology — I think all of those things are exactly the kind of things that the country would like to see us do."
He says that if auto suppliers collapse, that could threaten not just Ford, GM and Chrysler but any car companies — including Toyota and Honda — that produce vehicles in the United States. And that's something the Obama administration is well aware of, he says.
Future Bailout For Ford?
Earlier this week, independent auto analyst Maryann Keller told NPR that Ford remains in a "precarious financial position."
If demand for vehicles doesn't improve, does that mean Ford may need to ask the government for a credit line?
"We think we have sufficient liquidity," Ford said. "We don't see any need to think about going for additional liquidity. Obviously at some point, if global auto sales don't pick up — not just for Ford but for frankly every other automaker out there — it's not going to be a good thing."
He says the outlook for 2009 isn't great, but the company remains well-positioned if there is a modest pickup in sales in 2010. Still, he says, "we're not projecting a huge boost in auto sales."
It's possible that when all the dust settles, there will no longer be three car companies in Detroit.
"I have no way of knowing how many car companies — American or foreign — there are going to be," Ford says." But what I do know is that Ford is going to be one of the key players."
General Motors (GM) and  will receive  from the government of Canada and the provincial government of Ontario, however no more will be forthcoming from either Canadian or US governments unless the companies can reinvent themselves.

"This is a regrettable but necessary step to protect the Canadian economy.  We are doing this on the assumption that we obviously cannot afford either in the United States or Canada a catastrophic short-term collapse." said Stephen Harper, .

"We cannot, we must not, and we will not let our auto industry simply vanish.  This industry is, like no other, an emblem of the American spirit; a once and future symbol of America's success," said Barack Obama, . "These companies - and this industry - must ultimately stand on their own, not as wards of the state." 

Chrysler will receive 1 billion and may in fact be eligible for as much as CA$4 billion. If Chrysler succeeds in the next 30 days with a restructuring plan it would be eligible for a US$6 billion loan. A part of Chrysler's restructuring plan must include a partnership with  within 30 days to appease the US administration. Fiat is a supplier of smaller  vehicles, and the merger will help Chrysler to be viable in the North American market. A Chrysler court  would inevitably lead to it being sold off.

As a part of Chrysler's restructuring plans, Tom LaSorda, the president of Chrysler announced that Canadian operations would fold if it does not receive both the US commitment of $2.3 billion of aid and a new  CAW contract to reduce all-in costs by CA$19 per hour.  As a result of this announcement Chrysler's auto sales volume in Canada dropped 23% compared to March of 2008.

GM has until the end of May to restructure its company to receive up to CA$7.5 billion. As part of the companies restructuring, General Motor’s chief executive Rick Wagoner was replaced Sunday with Fritz Henderson, the current chief operating officer. Henderson spoke out on Tuesday that GM has submitted a restructuring plan which would close five plants, and this may be increased to meet the requirements for financial aid.  He is in full compliance with Obama's auto task force to seek bankruptcy if GM cannot negotiate with their unions, bondholders and others.

GM recently brought forward the ''"GM Total Confidence"'' program providing consumer purchase protection for customers who lose their job for economic reasons within the first two years from purchase. As a result of Chrysler's restructuring announcement in Canada, GM's Canadian vehicle sales volume fell only 17.3% compared to 2008, an increase from the previous month.

GM must reduce some of its  which include its pensions and union health care costs. A part of GM's ailments arose from investing in supplying truck and  during an economy of high gas prices when consumers were demanding fuel efficient vehicles.
2009  
, , is hoping that the CAW will support the restructuring process and re-negotiate their agreement. Whereas a  negotiator has said, “I don't see how the UAW will do anything until they see what the bondholders will give up."
 
The Obama administration is looking toward bankruptcy proceedings for the automakers, "as a mechanism to help them restructure quickly and emerge stronger. It will quickly clear away old debts that are weighing them down.  What we are asking is difficult. It will require hard choices by companies. It will require unions and workers who have already made painful concessions to make even more. It will require creditors to recognise that they cannot hold out for the prospect of endless government bailouts." said Obama.

The auto parts suppliers and IT software exporters in India have already been affected by the declining auto sales. GM and Chrysler software contracts provide US$300 to 350 million a year to vendors in India. As well these two major automakers usually award US$1 billion contracts to auto parts suppliers. "We are worried and closely watching the developments in the US to gauge the impact. The decline in auto sales in the US has already hit the order books of Indian suppliers," said a Delhi auto parts supplier. 

"Going forward, the industry will undoubtedly be smaller, but if our efforts are successful it will be viable and it will support good jobs for Canadians," said Clements. 

,  Congresswoman put forward the CARS act which provides a US$3,000 to 5,000 incentive for those who trade in their vehicle for a fuel-efficient car. "It clearly stimulates the economy, and it gets the consumer into the showroom and gets them buying again. But importantly — and this is what I particularly like about it — it really helps the environment quite a bit in two respects." said William Clay Ford Jr., executive chairman of Ford Motor Co.

 has not come forward with requests for assistance.

Since December GM and Chrysler have received US$17.4 billion government loans.