When someone "reminds" me that Ford didn't get a bailout ... should I remind them that

[zbdent]

it was only because Ford got a loan (hmm ... they had to borrow money? Someone keeps saying "if you can't afford it, don't buy it&quot right before the banks dried up?

[upaloopa]

1. What business doesn't borrow money?

It's known as leverage. You borrow to develop and pay back when the product sells.

[virgogal]

4. Alan Mulally made all the difference though.

[GitRDun]

2. Yes

The Economist wrote a nice article on the topic. Money quote:

By 2006 the situation had become so bleak that Mr Ford and Don LeClair, then his finance director, decided to undertake a dramatic refinancing of the business by raising bank loans secured against the company's assets. This they saw as the only hope of financing a turnaround in Ford's core North American business (Europe, at least, was already improving). But because the Big Three had unveiled umpteen unfulfilled turnaround plans over the years, Mr Ford needed to give this latest effort credibility, especially with the company's bankers. To do that he began a search for his own replacement as chief executive (he remains chairman). Eventually he looked outside the motor industry. Which is how Mr Mulally's phone at Boeing came to ring.

They were actually in worse shape than GM. They have done a good job turning around the company, but they really were lucky in their timing. Another 12 months and they would have been at the public trough to.

http://www.economist.com/node/17673258

[Scuba]

3. Ford also benefited in that they didn't see all their providers to under.

The smaller shops that make parts for the Big 3 would have suffered without GM and Chrysler being bailed out.