alfadriver wrote:
Javelin wrote:
Funny. I'm from there and my father works at NASA. I can guarantee you NASA didn't give them any money, they don't have any themselves! Also, not to be an ass, but GM and Chrysler both had to be bailed out totally by the US tax payer, and Ford, Honda, Toyota, Mercedes, and BMW all accepted sweetheart loans from their respective governments, which are funded by, well, you know...
We did? When was that? I recall getting massive loans from large banks, though....
Inconvenient truths...
http://www.thenewamerican.com/index.php/economy/markets-mainmenu-45/1290
Ford Motor Company was supposed to be the only major U.S. automaker not in need of a bailout, but this week Ford accepted a $5.9 billion loan subsidy under the Energy Independence and Security Act of 2007 (EISA). The EISA loan is designed to help the auto industry by supporting “capital investments in facilities designed to produce vehicles with greater fuel efficiency and reduced emissions.”
http://www.thetruthaboutcars.com/2010/08/government-loan-guarantees-help-ford-beat-the-debt/
Last week’s US Export-Import Bank loan of $250m was just the latest in a string of government loan guarantees that have helped Ford cut its debt. THe UK government also recently put a $572m guarantee for a $715m European Investment Bank loan to Ford. The EIB has also promised Ford $527.6m to produce cars in Romania. Ford has also taken on $1.8b in low-cost Department of Energy loans this year, on top of last year’s $5.9b DOE “Section 136″ retooling loan. And the help is working
And thus far consumers continue to see Ford as having avoided a bailout. Talk about having your cake and eating it too.
http://www.autoblog.com/2010/08/10/report-ford-using-government-backed-loans-to-pay-off-debt/
http://www.businessweek.com/autos/autobeat/archives/2009/01/yes_ford_needs.html
To hear Ford tell the story, the Dearborn (Mich.) company is the smart one that is getting its house in order and doesn’t need government loans like more troubled rivals General Motors and Chrysler. That’s mostly true. Ford borrowed enough in the open market before the credit markets froze up. But to say that Ford isn’t seeking a big chunk of Federal funds is a bit misleading.
http://uk.reuters.com/article/2008/09/17/autos-loan-ceos-idUKN1753618620080917?rpc=401&
Alan Mulally of Ford and Robert Nardelli of Chrysler said they were encouraged and pleased after pitching the industry's need for $25 billion in low interest financing to help them make more fuel efficient vehicles.
Automakers, strapped for financing due to their poor financial performance and tightening credit markets, want quick action by Congress to approve billions in taxpayer funds needed to activate the loan program for manufacturers and suppliers.
http://rumors.automobilemag.com/almost-in-the-clear-still-in-debt-ford-takes-out-government-loans-4144.html
A closer look at history will reveal that’s only part of the story. Four years after borrowing money as part of a turnaround plan, Ford now finds itself the recipient of government loans to help pay back its initial debt.
On the surface, the situation sounds confusing: How can Ford, which reported $7.3 billion in profit since the end of 2009, still be in debt? And especially after announcing record repayments earlier this summer? According to The Wall Street Journal, Ford’s debt began to accumulate after taking out a $23.5 billion loan. Even with the repayments, Ford’s debt still stands at over $25 billion.
As part of an initiative to elevate its credit rating, Ford has asked for and received debt assistance from the governments of the United States, the United Kingdom, and the European Union. The guarantees come from the Export-Import Bank of the U.S., which recently pledged $250 million, as well as the European Investment Bank. Meanwhile, as Ford began to lessen its debt, the automaker took out a $1.8 billion loan from the U.S. government to advance fuel-efficient technology.
http://jalopnik.com/#!5704575/ford-bmw-toyota-took-secret-government-money
In the depths of the financial collapse, the U.S. Federal Reserve pumped $3.3 trillion into keeping credit moving through the economy. It eventually lent $57.9 billion to the auto industry — including $26.8 billion to Ford, Toyota and BMW.
The Fed on Wednesday was forced to reveal the identity of the companies it aided during the crisis, after contending to Congress that keeping their identities and the details of such lending secret was essential. Much of Wall Street, and corporate giants such as General Electric, Harley Davidson and McDonald's, took advantage of the Fed's help. We've done the math on how the Fed propped up the auto industry.
While Chrysler and General Motors had to go to Congress to beg for cash in 2008, every other automaker's finance arm was having trouble as well. Typically, once they lend money to a buyer, they sell the loan, get the cash upfront, then pump the proceeds back into the business. They also take out short-term loans called commercial paper that keeps the day-to-day business afloat. The crash cut the circuit, raising the chances the automakers couldn't make loans to buyers and keep selling new vehicles.
That's where the Fed stepped in. In normal circumstances, the Fed only lends money to banks, leaving the decisions about who should get credit to them. But when the financial markets started to collapse in late 2008, the Fed set up several programs to lend money directly to corporations, a highly unusual step.
According to the data, from October 2008 through June 2009 the fed bought $45.1 billion in commercial paper from the credit arms of four automakers - Ford, BMW, Chrysler and Toyota - along with GMAC (the former General Motors credit arm). Of those, Ford sold the most, with $15.9 billion.
The Fed also lent $13 billion to investors who bought bonds backed by loans to new car buyers from automakers and banks. The Fed made clear that while investors got the loans, the move was meant to keep the lenders in business; the credit arms of Ford, Chrysler, Nissan, Volkswagen, Honda and Hyundai all benefited directly.
Ford spokeswoman Christin Baker said the two programs addressed systemic failure in the credit markets, and that neither program was designed for a particular company, or even a particular industry. Ford Credit has disclosed through SEC filings and conference calls with media and investors that it was taking part in both programs.
BMW told Bloomberg that the Fed lending "supported our financial profile and offered us an additional funding source, especially at times when the money markets and capital markets did not function properly and efficiently.
According to the Fed, the commercial paper loans have been paid in full, while some $2 billion remains outstanding on loans for bond investors.
The secrecy surrounding the details of the loans only masked how much aid corporate America and Wall Street needed. While General Motors and Chrysler took the brunt of the blowback for relying on government handouts, the reveal of the Fed numbers show that a far bigger slice of the U.S. auto industry needed help.
