> Ford likes to say it “didn’t take the money” because unlike General Motors and Chrysler, it didn’t require a taxpayer bailout to survive the 2008-2009 credit crisis. But don’t forget: Ford tapped into a different pool of government money set aside for the auto industry during those desperate times. (And those low-cost funds were critical to Ford’s survival because no other funding sources were available.)
> Hoping to create “thousands of green jobs” in the U.S. and reduce the nation’s dependence on foreign oil, the DOE under the Bush Administration established the $25 billion loan program in 2007 to encourage development of advanced technology vehicles that would burn less fuel and, importantly, be manufactured in the U.S. Congress funded the program in 2009, after President Obama took office.
> Ford applied for and received $5.9 billion in June 2009 (the same month GM filed for bankruptcy) to help pay for investments in more fuel-efficient engines, hybrids and electric cars and also to convert two truck plants to production of cars.
Ford is cancelling all their cars except trucks and the Mustang. They took a bailout that wasn’t a bailout in name only.
Those are different mechanisms with different purposes. If that’s the bar to be considered a bailout, Tesla was bailed out as well.
Whether or not they met the conditions of the loan is a different story.
And while technically true that the mustang is the remaining US car, it obfuscates the fact that the name is being more of a brand moniker than a model, and will include plans for an electric version of the “mustang”
It’s disingenuous for you to argue it was a bailout for Tesla when they have something to show for it (over a million EVs sold, 400k/year of manufacturing capacity, a Supercharger network) and Ford has zero, and Tesla paid their loan back while Ford did not.
You missed the point. I don’t consider either a bailout. They were investments to spur a particular industrial goal. If Ford doesn’t meet the intent, I just hope the government was smart enough in the way they formed the contract
If you consider them both the same kind of "investments" I propose you invest in me in the same way the government did with Ford. i.e. give me money, and I won't ever give it back.
At the same you I'll invest in you in the same way the government did with Tesla. i.e I give you money, and you pay it back 10 years early with interest.
I wholeheartedly accept this deal. Do you? Why not?
I didn’t say it was a good deal. Unfortunately, the government gets hosed all they time by poorly formed contracts. The government also plans on a certain percentage of these investments not to work out. I’m no more happy about it than you, but the original comment was merely a correction that Ford was not part of the TARP bailout.
With that being said, the link by the other poster says Ford will repay by 2022
https://www.treasury.gov/initiatives/financial-stability/TAR...
https://www.forbes.com/sites/joannmuller/2016/09/21/trump-sh...
> Ford likes to say it “didn’t take the money” because unlike General Motors and Chrysler, it didn’t require a taxpayer bailout to survive the 2008-2009 credit crisis. But don’t forget: Ford tapped into a different pool of government money set aside for the auto industry during those desperate times. (And those low-cost funds were critical to Ford’s survival because no other funding sources were available.)
> Hoping to create “thousands of green jobs” in the U.S. and reduce the nation’s dependence on foreign oil, the DOE under the Bush Administration established the $25 billion loan program in 2007 to encourage development of advanced technology vehicles that would burn less fuel and, importantly, be manufactured in the U.S. Congress funded the program in 2009, after President Obama took office.
> Ford applied for and received $5.9 billion in June 2009 (the same month GM filed for bankruptcy) to help pay for investments in more fuel-efficient engines, hybrids and electric cars and also to convert two truck plants to production of cars.
Ford is cancelling all their cars except trucks and the Mustang. They took a bailout that wasn’t a bailout in name only.