Le Bailout: Ford Is Against It

Bertel Schmitt
by Bertel Schmitt

Stephen Odell, CEO of Ford Europe, thinks that state aid of ailing carmakers is a dead-end street.

Odell told Reuters:

“I don’t think it’s sustainable for support from governments to keep competitive companies going forward, particularly in a protracted downsized economy.”

Odell also said that some automakers question the legality of Peugeot government bailout. Germany’s state of Lower Saxony, second largest Volkswagen shareholder, already announced steps against the bailout.

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  • Tatracitroensaab Tatracitroensaab on Oct 25, 2012

    Do you guys think that the bailout will actually be approved? I'm guessing not, due to EU rules and whatnot. Ironic that "them socialist anti-capitalist europeans" wont do bailouts of their automakers due to competition rules ;)

    • See 5 previous
    • Sen Moloney Sen Moloney on Oct 26, 2012

      @Pch101 "The Swedes threw money at Saab in an effort to get it sold off." Really? Because I remember that Sweden was one of the only countries that did not bail out its auto industry. The enterprise minister said something like GM was big enough to take care of itself and they would not loan them any money. Then when it looked like Saab was being wound down by GM there was public pressure for the government to buy Saab and the minister said something along the lines of the government will not own car companies. The only money Saab got (if I remember correctly) was from the EIB, and I think they had only used half of that money before they went bankrupt. The Swedish government guaranteed the loan and when Saab went bankrupt took ownership of Saab Automobile Parts, one of Saab's subsidiaries which it now owns and operates as a separate company.

  • El scotto El scotto on Oct 25, 2012

    I'm thinking huge "fuel economy/alternative energy" research grants. A massive EU boondoggle, all the car makers get to line up at the cash trough, and EU bureaucrats have employment. Oh wait, someone will have to pay for that.

  • Robert.Walter Robert.Walter on Oct 25, 2012

    Doesn't the method work differently? Pay despite protests. Wait until Legal challenge is brought to EU commission. Wait until EU says loans were illegal and then recall payment. In the meantime buy the helped out company breathing space by slow walking the process and hoping the company can recover. I'm not sure the EU has to approve a loan program before the money is disbursed, but I could be wrong...

  • Jim brewer Jim brewer on Oct 25, 2012

    Well, of course the Germans are fairly hypocritical. As to Germany, the Euro is a cheap currency, giving them an unnatural advantage in their exports. If Germany still had the D-Mark they would be hurting cowboys too. Sure these things are unsustainable long-term. That's just a given. The real problem is the idiotic austerity policies of the EU countries which is giving them a double dip recession and making it so that nobody can afford a car.

    • Th009 Th009 on Oct 27, 2012

      ... whereas in the US everybody can afford a car. Because the deficit and the debt will crush your children and grandchildren, not you, after all. Yes, those Europeans are really stupid and thinking only short-term, aren't they?