Why I Think Ford Is In Trouble

On the surface, Ford appears to be in better shape then Chrysler and General Motors. Technically they are in better shape too, no bailout money needed there. However this could cause major issues for Ford in the years to come.

Consider this: If the plan goes through as being pushed the US Government (meaning US taxpayers) will own 50% of General Motors. Just the thought of that would make the eyes of our Founding Fathers pop out of their heads. Now consider the effects of this. What do you think the odds of GM failing are after that? I would say pretty much zero. If GM needs more money the majority shareholder is going to provide it. Ig GM has bagage it needs to get rid of the majority stakeholder will absorb it for them. If the majority stakeholder needs new vehicles to lease who do you think they will look towards.

I hope Ford does succeed but when you place the coffers of the US Government behind its competitor it will make it an uphill battle.

Comments are closed.