Now that giant chunks of the American auto industry have become taxpayer supported “investments,” is it unpatriotic to buy a Ford? After all, by refusing to “partner” with the US government, Ford is competing with the US government and the American taxpayer by extension.
Will the American government sit idly by while a capitalist competitor like Ford steals market share from UAW/government owned shops? Hardly.
The Wall Street Journal highlights the uphill road Ford has to climb to compete with auto companies that have the unfair advantage of Democrat largess.
Unlike car companies which have accepted the warm embrace of the government, Ford still has to honor its contracts with people who have invested in the company. How inefficient!
You can see where this leaves us. Ford has about $26 billion in automotive debt — about the same as GM’s $27 billion. Ford’s debt is secured by its assets. And secured lenders must be repaid — unless they happen to be Chrysler lenders and get clipped by a company bankruptcy plan that’s backed by President Obama.
So Ford is like a homeowner who planned prudently and can pay his mortgage, while his spendthrift neighbors get their mortgage reduced by some new federal program.
Talk about corporate welfare!
Ford executives are probably fretting about this, but there isn’t much that can be done. They already have exchanged some of their debt for equity, and might do more of that. But the bottom line is that we live in a world where wisdom can be punished and where foolishness can be rewarded.
Nice moral hazard you have there.
Absolutely Not! I think the patriotic thing to do, at this time, is to buy Ford. It is the one company that is doing its damnedest to keep private and keep the govt out. Govt control of private industry is simply unamerican period end of story. If Ford keeps producing good cars and trucks and keeps the govt out I will buy Ford and recommend to everyone I can speak with to do so as well and specifically not to buy GM or Chrysler. I have nothing against the GM and Chrysler workers, but it is more important to support companies that remain private. Yes, Ford has had problems and has done things in the past that are reprehensible, but that is not the issue and don’t think it would be anything different if the govt controlled. Just look at how Chrysler is not honoring lemon law checks or complaints.