Le Bailout: Ford Is Against It
October 25th, 2012 11:56 AM Share
Stephen Odell, CEO of Ford Europe, thinks that state aid of ailing carmakers is a dead-end street.
“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.
Published October 25th, 2012 11:56 AM
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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 ;)
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.
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...
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.