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Ford CEO Stands Behind Decision Not to Take Federal Loans

January 26, 2010
1 min to read


Ford Motor Co.'s decision not to take loans from the federal government means the company has less cash to burn and more liabilities than it's Detroit competitors, according to CEO Alan Mullally. But he said the benefit "far outweighs the disadvantages," reported the Detroit Free Press and MLive.com.


General Motors and Chrysler received nearly $80 million in aid from the federal government and in bankruptcy court were able to get out from under billions in outstanding liabilities.

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Ford, meanwhile, remains about $27 million in debt.


Mulally on Tuesday also praised the Japanese government's decision last week to open up its version of the cash for clunkers program to U.S. automakers, according to the Detroit News.


"That's a positive step," he said at the auto show, but conceded Ford would sell "a relatively small number of additional cars" as a result.


The Ford Focus was the most popular car purchased under the U.S. cash for clunkers program, but Toyota and Honda combined to take the next four spots.


According to CNNMoney.com, 52 percent of the cars purchased under the U.S. clunkers program were manufactured in the United States, compared to 63 percent normally.


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