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Government Motors =Ford took the money

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  • Government Motors =Ford took the money

    Ford Motor Co. earned a great deal of consumer respect when it returned to health without the need for a federal bailout accepted by General Motors and Chrysler.

    But did Ford actually take "secret government money" to help it stay afloat?

    That's the controversial contention made this week by former Detroit Free Press auto reporter Justin Hyde, now writing for Jalopnik.

    As Hyde points out, the federal government on Wednesday revealed the indentity of companies it aided during the financial crisis through the Federal Reserve's Commercial Paper Funding Facility.

    Set up in 2008, the CPFF helped companies obtain high-interest, short-term loans -- known as commerical paper -- during the height of the international credit crunch. Some outlets, such as Fox Business, have referred to the program as the "commercial paper bailout."

    Hyde correctly points out that Ford's credit arm registered to sell the federal government around $16 billion in commercial paper. Like the financing wing of most automakers -- Toyota, BMW, GMAC and Chrysler also participated -- Ford found itself in need of liquidity when the lending markets dried up.

    But what Hyde (and more glaringly, his headline) incorrectly suggests is that Ford's borrowing was a secret. Spokeswoman Brenda Hines told Bloomberg back in October of 2008 that Ford Credit had applied for the program.

    Fellow Ford spokeswoman Christin Baker this week pointed out that Ford reported its participation in the CPFF in its public SEC filings. She also said Ford participated in the Federal Reserve's Term Asset-Backed Security Loan Facility, noting that "these two programs addressed systematic failure in the credit markets, and that neither program was designed for a particular company, or even a particular industry.

    "Ford was a fractional participant in both of these credit programs, and the federal government made healthy returns on all of these limited transactions."

    Bottom line? Yes, Ford's credit arm participated in a federal program meant to free up short-term lending at a time when very few investors were spending. It's no secret.

  • #2
    Re: Government Motors =Ford took the money

    yep they got a loan. as did Harley and BMW and a few others. the better question is did it get paid back.

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    • #3
      Re: Government Motors =Ford took the money

      yeah , sure LOL

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      • #4
        Re: Government Motors =Ford took the money

        this story is old.

        jalopnik runs out of stuff, like any forum.

        fords part was small, and given back fast enough for nothing to matter, is what I remember of it.
        Previously boxer3main
        the death rate and fairy tales cannot kill the nature left behind.

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        • #5
          Re: Government Motors =Ford took the money

          ford got 16 billion from the feds and
          DEARBORN, Mich., Nov. 27 ? For the first time in its 103-year history, the Ford Motor Company is mortgaging its assets, including factories, equipment, office buildings, patents and trademarks, and stakes in subsidiaries like Volvo, in order to raise $18 billion to overhaul itself.

          16 billion is a lot of money

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          • #6
            Re: Government Motors =Ford took the money

            Look at the new products it has brought to market.
            It didn't burn their stockholders.
            Did they burn their employee's? I don't believe so, but I'm not sure.
            How many plants did they shutter?


            GM burned everyone including taxpayers. >

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            • #7
              Re: Government Motors =Ford took the money

              Originally posted by ch1ll
              Look at the new products it has brought to market.
              It didn't burn their stockholders.
              Did they burn their employee's? I don't believe so, but I'm not sure.
              How many plants did they shutter?


              GM burned everyone including taxpayers. >
              sorry wrong.. g.m. asked for loans and got told no and FORCED into bankrupt. court..
              while ford sat and said, we didn't take any,,

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              • #8
                Re: Government Motors =Ford took the money

                sorry , according to reporter justin hyde it was only 15.9 billion

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                • #9
                  Re: Government Motors =Ford took the money

                  Originally posted by Tazracing
                  Originally posted by ch1ll
                  Look at the new products it has brought to market.
                  It didn't burn their stockholders.
                  Did they burn their employee's? I don't believe so, but I'm not sure.
                  How many plants did they shutter?


                  GM burned everyone including taxpayers. >
                  sorry wrong.. g.m. asked for loans and got told no and FORCED into bankrupt. court..
                  while ford sat and said, we didn't take any,,
                  yep I am sure that's exactly how it worked. :



                  and I'd like to know what the hell anyone means by "returned to health" - that seems a bit premature to me.
                  www.realtuners.com - catch the RealTuners Radio Podcast on Youtube, Facebook, iTunes, and anywhere else podcasts are distributed!

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                  • #10
                    Re: Government Motors =Ford took the money

                    ford's new stuff will keep mechanics busy for decades -kaboom

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                    • #11
                      Re: Government Motors =Ford took the money

                      Originally posted by SpiderGearsMan
                      ford's new stuff will keep mechanics busy for decades -kaboom
                      This got brings up a good point......we switched
                      to Ford for our company cars.

                      Just got my 2011 Taurus two weeks ago......all the
                      bells and whistles (Sync) are great but I can't see
                      'em working in 10 years.

                      It's the first company car I can talk to and
                      it answers me back....although that back up
                      feature is cool, won't be running over my trash
                      cans anymore.
                      Thom

                      "The object is to keep your balls on the table and knock everybody else's off..."

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                      • #12
                        Re: Government Motors =Ford took the money

                        they almost had me drinking henry kool aid ....

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                        • #13
                          Re: Government Motors =Ford took the money

                          there is so much there going on, that we could spend months arm-chair quarterbacking it.... GM got the billions because the US gov was on the hook anyway if they had to cover the pensions - so really what the Gov did was make a bet that they wouldn't lose all their money..... whether or not we should guarantee pensions is not a discussion I ever want to be part of.... it's a snake pit.

                          did Ford lie? no, they borrowed money that was guaranteed by the paper they held.
                          did GM or Chrysler get a bailout? nope - it was simply a money loser no matter what happened and if the other two survived, then they could get most, if not all of their money repaid - the people who got royally screwed were the people who loaned to GM before the bailout and the stockholders.... for what happened to the pre-backruptcy loans that were not given by the US gov - is what really, really, really concerns me.
                          Doing it all wrong since 1966

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                          • #14
                            Re: Government Motors =Ford took the money

                            pension guarantee corp is another fraud ..... if GM got to go through normal bankruptcy it would have survived...

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                            • #15
                              Re: Government Motors =Ford took the money

                              Originally posted by SpiderGearsMan
                              pension guarantee corp is another fraud ..... if GM got to go through normal bankruptcy it would have survived...
                              yep, but no politician is willing to pay the political price for telling tens of thousands of (voting) union employees to go pound sand.
                              Doing it all wrong since 1966

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