Pressure has been placed on the Big 3 Auto Manufacturers to start cutting costs and Ford is taking the next step by reducing it’s over head on interest. With it’s latest action plan, Ford managed to reduce their debt by as much as $9.9 billion. This one swift move alone will reduce Ford’s operating expenses by $500 million in annualized interest.
“Ford is upstaging GM with what its doing, said Pete Hastings, senior analyst at Morgan Keegan. “It’s handling things more smoothly than GM and accomplishing what it needs to do without the government getting involved.
It’s important to note that Ford is leading the way and showing it is a contender in the world market, with no intentions of failing. Ford is also the only one that didn’t have it’s hand out during this last round of bailouts and intends to help itself. How will this affect the company in todays market?
The government, now having a vested interest in GM, will be most likely offering incentives to buyers. Is this fair to Ford, who is struggling to fix things themselves?
Would you buy from Ford just because they are operating without a bailout?
I’m a ways from buying new cars, but I do buy a used car about once a year. The majority of my fleet, though dwindled now, is primarily Fords. I just picked up an 04 F150 two weeks ago and I’m glad that Ford is getting my dollar, no matter how far down the line.