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Issue written by Dark Magician: How come Ford does not require an immediate bailout in contrast to the other Big 2?
I understand that Ford will obviously be affected if the other two go under but is Ford more diversified than then the other two that it has other sources of income?
Perhaps they are better organized financially?
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Answer by joearnold00
They are better off financially at this point than the other 2. They have made more provisions for the current problem and believe they could make it at least another year before needing the bail-out money.
Answer by emiller1998
Honestly Ford may have been the only one to see the market and bank crash coming. Either that or it was a huge lucky break. Either way they benefit (or likely suffer less) while everybody including foreign companies suffer.
A few years ago they mortgaged everything they own to get some extra cash just in case.
Chrysler was still owned by Daimler who had no interest in creating a profitable company so even if they saw it coming they did nothing. They just used Chrysler profits from the 90′s to rebuild Mercedes.
Honda, Toyota, VW, and Hyundai are all in the process of building new plants in the US yet stuck idling the plants they have because of low demand. They obviously didn’t see it coming either.
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