Ford today announced that it welcomes action by the current Administration to provide emergency funding for General Motors and Chrysler.
“As we told Congress, Ford is in a different position. We do not face a near-term liquidity issue, and we are not seeking short-term financial assistance from the government,” Ford President and CEO Alan Mulally said in a statement. “But all of us at Ford appreciate the prudent step the Administration has taken to address the near-term liquidity issues of GM and Chrysler.”
Unlike GM and Chrysler who are looking for immediate assistance Ford has asked for access to a line of credit of up to $9 billion in bridge financing. The company has told Congress that it hopes and plans to complete transformation and restructuring without accessing a government loan. However, if GM and Chrysler fail, that could cause a lot of suppliers, that Ford frequently does business with, to go under.
“The U.S. auto industry is highly interdependent, and a failure of one of our competitors would have a ripple effect that could jeopardize millions of jobs and further damage the already weakened U.S. economy,” said Mulally.