Ford CEO Alan Mulally sates, "“We don’t want to borrow any more money. We have sufficient liquidity to fund our transformation plan, which means our business is in a relatively good shape." Contrarily, GM and Chrysler have secured $17.4 billion in US Government secured loans as a bridge to becoming better, leaner auto manufacturers.
The question is, "What does this mean in terms of US consumer confidence?" Will potential car buyers look at Ford as being the most likely to survive and not declare bankruptcy? Will this even figure into their minds? I would think that only a small percentage of customers even realize that Ford did not receive the government hand outs.
Another factor to consider is that Ford does not have to adhere to government stipulations concerning the loans. They do not have submit their business plans as a contingency for further monies. All in all, I would say that Ford is in a relatively good position, whereas Chrysler and GM's are tenuous at best.
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