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It was Ford (F) - not the usual suspects GM and Chrysler - that tapped federal loan programs to...

It was Ford (F) - not the usual suspects GM and Chrysler - that tapped federal loan programs to help retool plants and make more efficient vehicles, according to information made public by the DOE. The car maker initially received $5.9B in June 2009, and has since drawn down another $4.5B to date to help it update 11 plants in five states. Shares +0.8% premarket.
Comments (3)
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    GM's unions were just given the money, which to date, the government (nor FRB) has not provided any details or accountability. So what? Ford borrowed money through a loan program and has to pay it back. Not likely that GM or Chrysler will pay back the money stolen from the middle class and paid to the unions.
    12 Jan 2012, 07:54 AM Reply Like
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    I miss the day when there was a vicious national debate over whether the Federal government should guarantee a 600-million-dollar loan to Chrysler, the financing provided by private banks. Now, apparently, billions are on tap with no debate at all.

     

    You have to marvel at the wonders of socialism.
    12 Jan 2012, 09:25 AM Reply Like
  • Tdot
    , contributor
    Comments (3450) | Send Message
     
    There is a huge difference between Ford's fuel efficiency initiative loans, and GM / FiatChrysler's emergency bailout and taxpayer-funded bankruptcy cash.

     

    Ford's low interest line of credit allocation, provided by taxpayers through the Department of Energy, was already planned and approved by Congress to assist all the Automakers with funding what was an otherwise an unfunded mandate: to dramatically increase Federal Fuel Economy standards. The DOE set aside $25B for the automakers, to be spent on starting up production of low-profit but high efficiency vehicles, rather than depending on high-profit trucks and such. Apparently $10.4B of that went to Ford, and it apparently constitutes the lion's share of Ford's total remaining automotive debt, which stood at $12.7B in Sept 2011 (to be updated in a week or two).

     

    The point is, the taxpayers will get back every single penny they invested in Ford, plus interest.

     

    Meanwhile, GM and Chrysler were given $17.4B in "Bush loans" in Dec 2008, all of which have been written off instead of paid back, as part of the terms of the Obama bankruptcy proceedings.

     

    The total bailout package for GM and FiatChrysler worked out to over $80 billion in taxpayer funds, but only $50B or less of that will ever be paid back, depending on how much the Treasury will be able get for the remaining 33% in shares it owns of GM.

     

    Given how the taxpayers were given the shaft without so much as a "thank you ma'am", if GM and FiatChrysler wish to regain their honor, they should immediately go back into the books and publicly commit to pay back the rest of the money that was provided to them from December 2008 and on. Every penny, no excuses, no exceptions.
    14 Jan 2012, 05:40 PM Reply Like
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