Archive for the ‘bailout’ Category

Yesterday's headlines may have centered on Ford's new-found profitability, but Chrysler and GM are working toward the black ink, too. General Motors in particular has high hopes for the future, but the federal government is slightly concerned that GM may be rushing its game plan and setting itself up for disaster (again). This could be read as an example of burdensome oversight, or it could be a matter of the government simply looking out for its investment, since there may be legitimate cause for alarm.

The concerns were expressed by the Government Accountability Office in response to talk of an IPO for General Motors in 2010. The GAO sees...

The Treasury Department made headlines last week when it announced that bigwigs at bailed-out companies would be taking some sizable pay cuts. From banks to auto companies, many of those affected by the plan have remained silent, but General Motors' Fritz Henderson has now admitted that it's the right thing to do: "tough", but ultimately "fair". Of course, he's one of the lucky ones who's managed to avoid the feds' $500,000 salary cap. In fact, even with the reduction, Fritz will still make $950,000 a year, which sounds slightly more than "fair" -- though losing $310,000 worth of salary is slightly more than "tough", too. [DetNews]

It's no secret that Ford Motor Company has withstood the current financial storm far better than Chrysler and General Motors. Between its refreshed reputation as a manufacturer of quality vehicles and the fact that Ford was the only Detroit automaker to dodge both bankruptcy and bailout dough, the company has emerged from the economic downturn (if we're truly out of it) stronger and more respected by the public than before. In fact, some analysts are predicting that Ford will announce a break-even or slightly profitable third quarter when it reveals earnings for the period next Monday.

Much of Ford's good fortune is thanks to the company's...