Behind The Wheel

LATEST FROM OUR BLOGS

» More

- 5 Stocks That Benefit from Health Care Legislation: Analysts

MORE HEADLINES

» Markets | Economy | Companies

- Lloyds Prices Record Shares Issue at Deep Discount

BEHIND THE WHEEL VIDEO

» More

BMW Signed as Olympic Partner

20 Nov 2009

BMW has been chosen as the official automotive partner of the London 2012 Olympic and Paralympics games. Ian Robertson, board member of BMW Group, spoke to CNBC about the sponsorship.

Economic Roundtable 19 Nov 2009
CNBC's Steve Liesman and Larry Lindsey, of the Lindsey Group, share their economic insight.

Assessing Obama's Tour of South Korea

18 Nov 2009

Assessing the joint press conference held by U.S. President Barack Obama and South Korean President Lee Myung-bak, with Frank Lavin, former White House political director, speaking with CNBC's Oriel Morrison.

Safest Vehicles on the Road 18 Nov 2009
The Insurance Institute for Highway Safety released its latest list of safest vehicles, and CNBC's Phil LeBeau has the details.
Insurance Industry's Top Car Safety Picks 18 Nov 2009
The insurance industry's closely watched annual list of safest new vehicles is out, and CNBC's Phil LeBeau has the details.

RSS FEED

» Help

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

CNBC ON DIGG

Ford's Favored Status

Published: Wednesday, 24 Jun 2009 | 9:01 AM ET

Text Size

By: Phil LeBeau

Ford
If actions speak louder than words, watch how the Obama administration is dealing with Ford lately.

When the President announced new CAFE standards at the White House, who were the two industry leaders positioned to stand out from the other auto executives?

Ford CEO Alan Mulally and UAW President Ron Gettlefinger.

When the Obama administration announced the first round of federal loans for developing future vehicles and fuel efficient technology, where did Energy Secretary Stephen Chu make the announcement? At Ford, standing side by side with Mulally.

In this age, where every event and speech coming out of the White House is carefully scripted, don't think for a second that Ford's [F Loading... () ] favored status in either case was an accident. Ford was put out front by the Obama administration to both quiet critics of the White House role in re-shaping the auto industry, and (I believe) as a way for the President's people to say in actions not words, "Look at how an auto company can thrive without government intervention."

2009 NY Auto Show

Top Ten Gas-Sipping Cars

Milestones in the Auto Industry

Oh sure, the President, the Auto Task Force, and all the folks working in this administration will tell you they are agnostic about the auto companies and not favoring one over another. But, with all things political, you have to read between the lines. This administration has heard the "Obama Motors" quips from those who think the White House will try to give GM an advantage when it comes out of bankruptcy. The theory being that if GM thrives, it's biggest shareholder (the Federal government) will profit and it will confirm the Obama strategy for rescuing GM and Chrysler.

I've never bought into the idea the President wants to run GM. But I do think the guys in the White House are sensitive about looking like they are calling the shots every day at GM. So how do you defuse the critics? You take every chance you can to publicly support Ford. Hey, it's an all American company on the rebound and pushing the idea an auto company can thrive with smaller, fuel efficient cars.

These moves don't mean Ford will get a free pass from the White House in years to come. But for the next time you hear someone say, "The President just wants GM to be king of the hill", point out how Mr. Obama is dealing with Ford.

_____________________________________
Click on Ticker to Track Corporate News:

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