brianguy

Auto Bailout: Ford's Sentiment Tells All

these are complex industries and markets with many issues involved, which most people for or against the bailout fail to address.

there's sort of a fallacy that leads people to falsely believe that if a competitor goes out of business, it's great for the other guy's bottom line. it's already been explained that this would not be true in this case because the supply chain would suffer, and due to labor problems. I agree the best thing for F was the bailout, because it kept them from bankruptcy and reducing costs which F could not, by remaining solvent.

further Ford would be no monopoly, the furthest thing from it. therefore no great advantage there. further, lack of competition often breeds complacency. while that's less likely with so many foreign competitors, it could still be true, just to a lesser degree. GM/Chrysler tanking would also cause the UAW to throw all of its many legacy costs behind Ford and nobody else.