Why does Ford Motor support bailout for GM and Chrysler?

[Erik Y]

Does Ford, GM, and Chrysler really compete against each other? Or they just a single 'Big One' communist cartel? Very confusing why Ford CEO would support a bailout for the "competition" when his own company would get nothing.

 

[ichyedad]

If GM and Chrysler failed, there would be a trickle down (or more like a flood!) effect on parts manufacturers and suppliers, most of which would fail as well. Ford uses many of the same suppliers, so that would have a major effect on Ford as well and could lead to their demise also.

 

[SmartA$$]

Ford might need a bailout next year. They aren't up against the wall yet but they know they might be soon. They also know that if GM and Chrysler get loans, the government will pretty much have to give a loan to Ford also. But if GM and Chrysler don't get their bailouts, Ford isn't going to get one either.

Basically Ford isn't supporting GM and Chrysler , they are making sure they have a bailout loan available when/if they need one.

 

[Tom]

He would support it to enhance the idea that the "US car manufacturers are a critical part of this country". You can't get any money for your company if you say you're the only one who deserves it.

But yes, the Big Three have grabbed on to the government to keep them afloat for many, many years. They have encouraged monopolistic policies that keep other start-ups from ever getting by.