Sunday, January 3, 2010

American cars - the case for Capitalism over statism is Ford

The American car company that did not accept Government takeover and control bailout Ford is prospering in late 2009 and surging into 2010.

U.S. roadways said Ford hybrid vehicles were very popular – and helping Ford set a new record in 2009 for hybrid sales in a year in which overall industry demand for the gas-electric vehicles was down.  Mentions of "I love it" and positive Green impact resounding in Detroit.

Fords November sales were up 14% and crossovers were up 26% versus 2008 and December is looking even stronger. The Q1 2010 forecast is for car demand and production to be up 58% year over year.

“The Ford plan is working, led by the strength of our product lineup and customer demand for our new cars, utilities and trucks,” said Czubay.  “Consumers increasingly are noticing that the Ford difference is our great products, our strong business and our leadership in quality, fuel efficiency, safety, smart technologies and value.”

Recently Ford has initiated measures to enhance and secure their financial viability. Ford Motor Company announces actions to improve balance sheet and enhance automotive liquidity. I n an era of Government bailouts and fiscal irresponsibility and declining sales it shows the Private sector is vastly more viable than the public sector to run American car companies.

To be fair how  are President Obama's public sector car companies doing?  GMAC will be receiving another $3.8b in TARP support, on top of the $12.5b it has already received. As a result, the US taxpayer’s stake in GMAC is expected to rise above the current 35 percent stake, just in time for more write-downs planned soon. Like many Government entities, no real incentive to be profitable when taxpayers perpetually fund you and run massive deficits. Post Office, Social Security? 

Okay but Obama's Government bailout of Chrysler Co must be fairing better?  Per US Treasury last month taxpayers are losing more than $30 billion on the rescue of struggling automakers Chrysler and General Motors. Say it aint so?

At this point I will not even delve into the Union kickbacks involved in these bailouts and complicit involvement in the Auto woes in America. But Ford is a shining Beacon for Private enterprise and Capitalism versus statist Government takeover Socialism and the radical left liberals controlling DC these days. We have a choice to vote with our purchase Dollars and support Ford.

My last three SUV purchases were GM/Jeeps and yesterday bought a new Ford Edge Crossover/SUV. Never felt more American and good about a car purchase in my life. Ford salesman said to me he was selling a ton of cars to fed up Americans not going to subsidize Government bailout companies.

Vote on 1-19-2010 in MA special election and in November, we will be heard.

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