GM Bankruptcy Not Expected To Be a ‘Quick Rinse’

Wednesday April 22, 2009

Bill Ford, executive chairman of the Ford Motor Company recently said that he did not believe that GM’s expected bankruptcy will be quick and easy. He explained that reading about “quick rinse” bankruptcies in the news has become a more frequent occurrence. However, he believes that GM is going to face a long struggle.

Ford is also a bit worried about his own company. Thus far, Ford has been the only American automaker to not appeal for government funding. He claimed that GM, Chrysler and the others are now  “state-owned” and fears that he will not be able to compete with such a power. However, he did say that he sees an advantage about being an independent company. In an article on Bloomberg.com, he said the following, “The advantage of being an independent company able to react quickly and chart your own future -- there’s great benefit to that.”

Instead of asking the federal government for a bailout, Ford cut jobs and spending by closing factories. This allowed the company to save a great deal of revenue, which in turn, allowed it to keep its head above water. Ford wants to stay that way for as long as possible.