LATEST FROM OUR BLOGS

» More

- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great

MORE HEADLINES

» Markets | Economy | Companies

- Analysis: APEC Nations Back Face-Saving Climate Plan

BEHIND THE WHEEL VIDEO

» More

Turning A New Leaf 13 Nov 2009
Nissan is unveiling its electric car, with Carlos Ghosn, Nissan CEO and CNBC's Phil LeBeau.

What is Driving the Indian Auto Market?

12 Nov 2009

The Indian auto market is very hot, not simply due to stimulus provided by the government. Anand Mahindra, vice-chairman & MD of Mahindra & Mahindra, tells CNBC's Chloe Cho what else is driving the Indian auto market.

GM Chairman Urges Easing of Pay Caps 11 Nov 2009
GM chairman Ed Whitcare says it is hard to attract talent with pay restrictions, reports CNBC's Phil Lebeau.
GM's Road Ahead 11 Nov 2009
General Motors Chairman Ed Whitacre is calling on the Obama administration to loosen pay caps. CNBC's Phil LeBeau has more on this and GM's road ahead.

Car Imports Widen UK Trade Gap

10 Nov 2009

The UK's trade deficit widened to an eight-month high in September as the number of imported cars rose sharply. Neil MacKinnon from VTB Capital spoke to CNBC about the outlook for the UK and sterling.

RSS FEED

» Help

Subscribe to this RSS feed
Stay up to date with Behind The Wheel.

CNBC ON DIGG

Behind The Wheel

Text Size

Nov.25

9:16 AM ET

Tuesday, 25 Nov 2008

Ford CEO Mulally: We're In Better Shape Than GM, Chrysler

Posted By:Phil LeBeau

Topics:CEOs and CFOs | Economy (U.S.) | Automobile Industry

Sectors:Automobiles and Parts

Companies:General Motors Corp | Ford Motor Company

Alan Mulally
AP
Alan Mulally
It's not quite guilt by association, but it's close. Ford, by virtue of being one of the Big 3 and because its finances are weakened, has been lumped in with General Motors and Chrysler as an auto maker needing a bailout. Somewhere in Dearborn, Michigan Ford CEO Alan Mulally is doing a slow burn.

Mulally will tell you, Congress, and his employees that Ford is NOT in the same leaky boat as GM and Chrysler. In fact, when Mulally talks about Ford requesting federal aid he calls it a low interest line of credit, not a bailout. While I don't agree with everything Mulally says (they are in the same boat), I can see exactly why he feels the way he does.

Ford's liquidity is far better than GM's and Chrysler's. It's not on the verge of bankruptcy, but it's not far. If GM goes chapter 11, it may not be long until it drags Ford with it.

So why is Mulally on Capitol Hill requesting a bailout from Congress? Because it's the smart move. First, if $25 Billion can keep GM and Chrysler afloat, that's good news for Ford. Second, if the day comes in 9-12 months where Fords finances slump to the point where it needs a "low interest federal loan", Mulally will have billions in his hip pocket.

Ford, with help from Volvo, tops safe car list

In the meantime, Ford is trying to remind the public that it is in a different spot than its fellow Detroit auto makers. The new marketing campaign is called "Employee Pricing Plus." The ads say the plus stands for the fact Ford's quality is higher than competitors, so buyers can have peace of mind they are getting a decent vehicle at a decent price. It's subtle. It may not have much impact. It is so Ford right now.

Knowing Mulally as I do, I'm sure he's watching this whole process play out and is relatively calm about where Ford stands. Yes, it is serious. Yes, it could ultimately take Ford down. Still, Mulally and Ford will tell you, their situation is different.

_____________________________________
Click on Ticker to Track Corporate News:

- Ford Motor [F Loading... () ]