Ford Scores More European Aid
Ford has once again snagged aid from a European government, as The Wall Street Journal [sub] reports that the British government has approved a £360m ($543m) guarantee on a £450 ($676.4m) European Investment Bank loan to The Blue Oval. The money will be used to fund a £1.5b ($2.25b) investment in four British Ford manufacturing sites. In an official statement, British Business Minister Mark Prisk said
[Ford’s] investment of GBP1.5 billion over the next five years is a great opportunity to take the lead in developing low-carbon manufacturing. This backing from the government will help to ensure the long-term success of manufacturing in the U.K. and make sure we are at the forefront of new technologies
The money will be used to safeguard 2,800 British jobs, and help Ford develop a new generation of low-carbon engines as well as for development of commercial vehicles. This despite the fact that Ford of Europe had previously laid into GM’s persistent requests for European aid in restructuring its Opel division.
The EIB is a bank, right? And a loan guarantee is a cosigner, right? How is this Ford getting govenment money? Seems like they're getting a loan from a bank and the UK is investing (without actually spending) in their domestic manufacturing future.
An item not up to the standard I expect of TTAC. A loan guarantee is "aid". And that's about it. The rest of the post is irrelevant.
Z71's point is getting a bit lost because he doesn't like Ford. Still, his point is correct. Governments are deep in the red because of spending way too much. If Ford needs a line of credit, go to a bank. Isn't that what individuals and companies do? If the decision to expand business is based on a taxpayer funded line of credit, then perhaps governments across the board need to rethink this approach. Now, if a state government wants to incentivize a company and get an ROI for that taxpayer investment, great. If indeed that's the case, lay out the ROI the taxpayers will reap. This is never done. Gee, I wonder why?
thebeelzebubtrigger "I think it spreads due to a form of mass hysteria that has its origins in the inability to face the fall of the American Empire…" Yeah, I'm going to go ahead and not agree with your line of thinking either. As the extremes on the left and the right get further to the left and the right, us in the middle seem to be left behind in the process. Life is full of shades of grey; extremists on both side of the debate seem to forget that.