DEARBORN, Mich. — By shunning government loans, Ford Motor Co.'s top executives say they hope to buff up the automaker's image and set it apart from its cash-starved Detroit competitors, General Motors Corp. and Chrysler LLC.
GM and Chrysler are in desperate need of government money and may not last until the end of the year without it. But Ford set up $23.5 billion worth of credit back in 2006, and both Chief Executive Alan Mulally and Executive Chairman Bill Ford Jr. told The Associated Press Tuesday they are confident that the borrowing, coupled with restructuring and new product plans, will get them through the recession without relying on the government.
Ford even said the century-old company that bears his family's name might be able to use the independence from loans to its advantage.
"I think if they see Ford as a company trying to pull itself up by its own bootstraps, and making it on its own and pulling the right levers, I think that could be a positive for us," Ford said.
Mulally said Ford has completed much of the restructuring that Congress is demanding of the other two, slimming down its brands by selling Jaguar, Land Rover and Aston Martin and studying the sale of Sweden's Volvo.
Ford, he said, has cut its factory capacity to match demand, and it anticipates no further cuts will be necessary as long as the U.S. auto market doesn't worsen considerably. The company has announced the closure of 17 factories and eliminated 50,000 jobs since 2005, many through buyout and early retirement offers.
The interviews came as weary Democratic congressional leaders pushed to clear the final obstacles to a $15 billion bailout of Chrysler and GM Tuesday night, but the rescue plan faced new snags as Republicans raised deep concerns.
Among the requirements in the Democrats' proposed legislation is the appointment of a "car czar" to oversee Chrysler and GM with authority to yank the loans if the companies don't make substantial progress toward restructuring. more
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