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Rival Bankruptcies Spook Jealous Ford

It's kinda jealous

By Kevin Spak,  Newser Staff

Posted Apr 1, 2009 6:58 AM CDT
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(Newser) – Ford Motor Co., the lone member of the “Big Three” not to accept government help, is suddenly looking across town with dread and a touch of jealousy, the Wall Street Journal reports. A bankruptcy at GM or Chrysler could wreak havoc on Ford’s supply chain, as shared suppliers or dealerships buckled, all while giving the bankrupt competitors an edge by allowing them to exact deeper concessions from unions and creditors.

Until now, Ford has had reason to be optimistic. Sales are plunging—the company expects a 40% slide in car and truck sales for March—but its market share is growing, and it’s already reached cost-cutting arrangements with the UAW. But “the collapse of one of our competitors would have a severe impact,” said CEO Alan Mulally. “The domestic auto industry is highly interdependent.”

In this July 23, 2007 file photo, United Auto Workers President Ron Gettelfinger, left, and Ford Motor Co., Executive Chairman Bill Ford shake hands to open their contract talks.
In this July 23, 2007 file photo, United Auto Workers President Ron Gettelfinger, left, and Ford Motor Co., Executive Chairman Bill Ford shake hands to open their contract talks.   (AP Photo/Carlos Osorio, file)
In this Dec. 28, 2008 file photo, the company logo shines off the grille of an unsold 2009 F-150 Platinum pickup truck at a Ford dealership in the west Denver suburb of Lakewood, Colo.
In this Dec. 28, 2008 file photo, the company logo shines off the grille of an unsold 2009 F-150 Platinum pickup truck at a Ford dealership in the west Denver suburb of Lakewood, Colo.   (AP Photo/David Zalubowski, file)
In this combo made with file photos, logos for General Motors and Ford are shown.
In this combo made with file photos, logos for General Motors and Ford are shown.   (AP File Photos)
Unsold 2008 Mustangs sit at a Ford dealership in Castle Rock, Colo., on Sunday, Feb. 22, 2009.
Unsold 2008 Mustangs sit at a Ford dealership in Castle Rock, Colo., on Sunday, Feb. 22, 2009.   (AP Photo/David Zalubowski)
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COMMENTS
Showing 1 of 1 comment
Robert_Dada
Apr 1, 2009 12:12 PM CDT
Oh great. Why don't we bail them ot just in case. I'm losing my job in August. Maybe Geithner will give me some funding.

Analyst says Ford's finances are precarious
NPR

Obama reportedly favors bankruptcy
TheStreet

So why is Ford smiling?
New York Times

 
bankruptcy • Ford • Alan Mulally • auto industry • auto bailout • Ford Motor Co.

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