Tuesday, June 09, 2009

Ford going to be David to GM's Goliath?

Not too good at trying to create images, sorry, but couldn't find anything that worked.
One of my rare chances to show my un-creative talents.

So, will Ford be playing David to GM's goliath? Or if you believe all the media hype, will Ford be the heavyweight hasbeen being pummeled by the new welterweight champ? All of the non-stop speculation about the future of Ford has my eyes rolling round and round. Is it that the media believe that if you repeat something often enough it becomes true? Does the media secretly hope for the demise of the one Domestic Automaker that didn't ask for Federal Bailout help?

It seems that every scribe for every publication is faulting Ford for doing the right thing.
They want Ford to fail, despite the fact that it's on the road to recovery. Media like The Wall Street Journal, linked in title, persist in proclaiming GM the eventual top dog in a fight that's far from over. While ocassional praise for Ford's inovation and ability to avoid bankruptcy is seen, there's often the backhanded slap of speculation that they won't be able to compete in the future.

You don't hear speculation about Toyota's future, nor Honda, yet both of those companies are feeling the economic pain as well. Truth be told, there's plenty of bad news at Toyota.
The #1 Automaker has sucummed to the same bad habits that the Domestics had. An overreliance on large trucks and SUVs, stale product and mediocre quality. Toyota has become GM in a very real sense. Yet it's Ford that the media keep digging a premature grave for.

While it's true that Ford Motor Credit is at a disadvantage to GMAC since the later was able to become a bank holding company and tap into further Federal assistance, beyond parent GM's auto bailout loans and bankruptcy. It's also true that Ford will be able to seek Union contracts closer to crosstown rivals.

As the right wing loonies gather to boycott GM and the courts continue to throw wrenches in the Fiat/Chrysler works, Ford continues to make gains and work toward recovery and a profitable future. All the media reports are hoping to become self fulfilling prophecies. And it just makes me sick. A lie is still a lie, no matter how many times you repeat it, except in the American Media.

My one concern is that consumers who read this non-stop obit for a recovering FoMoCo will soon start to believe the hype. I on the other hand have faith that Ford will be David and overcome the Federally supported GM. Inovative fresh product and good business practices will do that.

1 comment:

Shawn said...

The problem I see with government controlled company is this: Will Obama allow GM to fail if Ford is that much better. If people stopped buying GM's products, does that mean the government will inject billions more tax payer money to lower the prices or unlimited development funds for new models?

Now if Obama will allow GM to fail, then what is the point of saving it in the first place? We have to assume that he will not allow GM to fail. Which means Ford is not going to be facing a fair fight.