Wednesday, March 11, 2009

Fair open rational decision...

It's no surprise I keep my eye on the auto industry. Not that I give a shit about cars or anything, but they're my hometown's lifeblood.

Right now it's as if I'm watching a live autopsy of a hemophiliac and all the bailout money in the world won't stop the bleeding.

A source of mine in the financial world has faith in Ford as the top survivor of the North American auto companies. This isn't hard to see if you look closely enough. Ford is the only company in the Big Three which isn't completely freaking out right now.

GM is the worst. They've even stooped so low as to ask their employees to beg congress for more money. GM wants solid cash to keep afloat and then complains that it's not enough. No respectable business in the world would act like this and it's shameful on their part after being one of the largest companies in the world for so long.

Come to think of it, didn't GM say they planned to completely pull out of North America by 2008? Well, it's 2009 and they're still here, trying to soak up as much money as they can before the CEOs finally ditch the workers who made them billions.

But again, Ford seems to be using their brains where no other company will.

The company has suggested to the Canadian government NOT to directly bailout the auto companies. The idea is that it's not just the company itself which is suffering. It's feeder plants which make bumpers and wheels. And dealerships across the country which are losing out.

Instead, Ford has suggested a plan to give a credit of $3,500 to anyone who trades in a car which is 11 years or older as an incentive to buy a new car.

This is brilliant on so many levels.

Ford knows it's in a position to make money off this. It's good advertising and it puts their money where their mouth is. It's logical. It helps everyone by stimulating sales. It shows Ford is not a dying deer on the side of the road.

But most of all, if their suggestion is carried out, GM and Crysler will be forced into a disasterous situation where they will have to do something radical; become actual businesses and behave as such.

Toyota has recently got on board with Ford's idea and any car company with an ounce of dignity and balls would do the same. But GM and Crysler want the handout because they can't see the bigger picture.

Ford will be on top when the dust settles. At least in terms of North American auto companies. They started the auto industry and they'll be around for a long time to come. It will be GM and Crysler who will end up being Found On Road Dead.

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