Non-Bailed Out Auto Company Posts 33% Sales Increase, Bailed Out Companies Post Declines

Which is a comparison made all the more interesting when you consider that, despite Obama’s promises to the contrary, the federal government is very much involved in the day-to-day operation of the bailed out auto companies.

Ford Motor Co. posted a 33% rise in December U.S. light-vehicle sales, ending a stellar year for the auto maker compared with its rivals. Ford recorded its first full-year market-share gain since 1995.
Meanwhile, Chrysler Group LLC posted a 3.7% decline compared with a year earlier and said its full-year sales were the worst the auto maker had seen in 47 years.

The moral of the story? Government shouldn’t be running businesses.
On a related note, I wonder how much of Ford’s sales boost was driven by the fact that the company isn’t on the government dole? I think there’s a lot of resentment among Americans over the bailouts of Chrysler and General Motors, and a lot of anger over the fact that it was pretty obviously just a move to prop up union jobs, and maybe that’s being reflected in the choices of Americans when they’re buying cars.
Also, remember that Ford is still heavily invested in the sort of SUV’s and light trucks that Americans prefer to buy as opposed to Chrysler and GM which are emphasizing the hybrids and small cars that Congress wants America to buy.

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  • http://Array sayanything-15427

    Dropping every member of the UAW would be an extremely smart business decision for Ford. The UAW own the opposing American companies, why should Ford be forced to let the competition negotiate its contracts with its own employees?

    Give Ford Employees a choice, drop UAW and create your own FAW union or lose your job. I don’t understand how it could lose a court challenge. Fords only other option would be to shut down completely and refuse to sell its assets. The Government doesn’t have the power to tell them they HAVE to make cars do they?

  • Danny

    I understand that there are exceptions to every rule. My mom also had an Escort that got over 200,000 miles on it. The only problem that occurs is that most American-made cars haven’t been able to do it. I know times have changed, but inferior products of the past is the real problem that faces the “big 3″. Just look at which company benefitted the most from the “Cash for Clunkers” program – Toyota. What is their track record? GM’s current ad campaign of “may the best car win” is absolutely rediculous. I think it already has. Number 1 and 2 in sales every year are the F 150 and the Camry.

  • Bruce

    Dropped my Avalanche for an F350 a year or so ago, and will have to replace the wife’s Explorer next summer.

    The candidate for the Explorer replacement is another Explorer, since we prefer to buy American, and there’s only one company left.

  • ec99

    Ford stock has gone up over 11% in 2 days. Now’s the time to buy. From 11.08 to 40 by the end on the year.

  • http://www.sayanythingblog.com/ Pfeh

    Sure, luck is an aspect. But had their luck run out – like GM and Chrysler? Then Ford should have declared re-organization bankruptcy.

    GM and Chrysler dragging their feet on filing and instead looking for the freebie to prop up their failed model is why they deserve scorn. They signed themselves over to government/union control and now need to pay the price.

  • dave in NC

    After what has occurred the past year, you really know the answer to that question, don’t you?

  • sayanything-15427

    I know the CORRECT answer, but I do see your point. Since when does the Constitution have anything to do with how Congress legislates?

  • http://www.facebook.com/profile.php?id=1341862753 facebook-1341862753

    Is it that silly to say that they knew? Or does it mean darker things are at work of which we choose not to recognize? Remember how Martha caught hell for insider trading? You know that the housing bubble and credit crunch was facilitated by government interference in the housing markets. CRA and the quasi’s (freddie/fannie) built the bubble, the fed played off it with interest rates until it popped. Being a high value player (large corp with many jobs) with inside connections(lobbyists, unions, etc..) is it really to silly to say that luck had anything to do with it? I mean these guys all play golf together and hang out at the same cigar bars. You don’t think that they follow the “you wash my back..” philosophy they are the top of the food chain and will do whatever to stay there and keep their buddies up with them?

  • rightrandy

    FACT: 85% of gains in the GDP happen when congress is NOT in session.
    CONCLUSION: The government is an 800 pound gorilla on the back of the American economy. Is it any wonder Government Motors can not show a profit?

  • Danny

    Perhaps if you didn’t prefer to buy American and bought automobiles from Japan that will last longer than 120,000 miles, you wouldn’t be needing to replace the wife’s Explorer. Granted, if I would even consider buying American, Ford would be the only choice. Be that as it may, I’ll take a Toyota or Honda any day.

  • sayanything-15427

    I suppose another option is to move all its operations to Canada and Mexico to get rid of the Unions. Then they just have to wait for the other two US Automakers to tank and the UAW to dissolve before moving back. I bet they could even clean up and make Detroit great again once the UAW is gone and the corrupt government loses its only power base.

  • sayanything-15427

    I have been looking but I’m on a budget, it would still take quite a bit of “bailout discount” for me to consider anything but a Ford or sister company. Even used.

  • sayanything-203

    JustRuss,

    Great point!!!

    The UAW is not only a competitive albatross, but it now represents a clear conflict of interest as well. If Mr. Mullaly and the other Ford executives are smart enough to keep the company afloat and out of the hands of the government and the UAW, they surely ought to be able to dump the UAW copletely.

  • sayanything-203

    Its almost sad. The new Camaro and the Corvette (including the ZR-1) are the hottest performance bargains on the market. Period.

    And the Dodge Charger/Challenger/Magnum/Chrysler 300 platform is a modified Mercedes E-Class platform which is as technically advanced as there is on this side of the Atlantic.

    And still people are bying Fords and ignoring the two union-owned bailouts.

    Imagine that!

  • Noel

    does Say Anything Blog ever include links to the news stories they pull from? maybe i’m a dolt, but all of their links seem self-referential.

  • sayanything-15427

    Or the Dems could just skip the “programs” and simply assign a new Government Motors car to every family for free. People are so numb to the buying of votes that they wouldn’t blink as they accepted the keys.

  • Flame

    I have been a GM supporter and buyer for 30 years; I refuse to buy a GM now that it stands for Government Motors.

  • Robert

    I Bought a new Ford in Sept. Had a Dodge , will never buy a Gov.Moters Car.

  • Wayne

    Don’t talk too loud. The Democrats may pass a law requiring every family that owns more than one vehicle, half of their vehicles must be from GM or Chrysler.

  • http://www.fairtax.org/ Doug

    Gotta disagree with your assessment of US cars. I had two ’95 Ford Escorts (bought both used) that I got over 200,000 on each before they quit (son wrecked one, which is why I bought the second one.) Second one dropped a valve at about 230,000 miles. Not too bad for a “throw-away” car, huh?

  • Moszer

    Count me in that camp. Resentment is exactly why I will be buying a Ford truck instead of Chevy or Dodge next year.

    Still not sure how I’ll explain it to the old man. A life long mechanic who calls Ford’s “Job Security”

  • sayanything-4744

    They also have a more popular stable of “energy efficent” cars like the Focus. I happen to drive an F-150, but I chose it over a Chevy and Dodge because I wanted something with low(er) miles (I bought used) and drove nice. I could just as easily be driiving a Dakota or a Silverado. This was in 2003.

    I would absolutely not buy anything but a Ford if I was in the truck buying mood again, and my satisfaction with my current vehicle is not the only reason why.

  • sayanything-3444

    Given the propensity for thuggery that the admin has already demonstrated I thought it took some big brass ones for them to put it out there too, but …

    I would love to see Ford corporate do an ad campaign on this but you are correct that Obama and his union goons would probably go ballistic on them.

  • sayanything-530

    And here I thought if they televised enough commercials with ex-football players that sales would surely rebound and save GM from trouble. I drive and Excusion, I love it. We also have a Saturn that we got some years ago. It’s not a a bad car, but I wouldn’t have chosen it personally. How long till we hear that GM needs more money to keep in business?

  • dginga

    electnixon: So when Ford management makes smart business decisions, avoids bankruptcy and doesn’t take billions of taxpayer dollars in a bailout, it’s just luck? Are you really saying that GM and Chrysler are just examples of exemplary management decisions that are plagued with BAD luck? Give me a break!

    Ford builds products that sell all over the world! Of course, if they were truly smart managers, they’d get rid of the unions!

    The auto company bailouts were simply Obama paying back the unions for their loyalty to the Dems lo these many years. Chrysler has desperately needed to go out of business since 1978. LET THEM!!! GM needs to decertify all of their unions so they can revamp their manufacturing in the U.S. to reflect the PROFITABLE plants they own in foreign, NON-UNION countries.

  • sayanything-3444

    I’m not so sure about the performance bargain aspect – the Shelby GT 500 is a pretty smokin’ car at a price point below the ZR-1 (obviously above the Camaro and others you listed). May not have the handling of the ‘Vette, but it will definitely keep you broke putting tires on it. Either way though your point is valid – I told my wife the other day that it wouldn’t matter to me if GM or Chrysler were making the best cars on the planet, at present you couldn’t pay me to buy one.

  • http://sayanythingblog.com robport

    A lot of people are saying that.

    I wonder if there’s any way to get a metric for how big an impact that sort of sentiment has had in sales. People “voting with their wallets,” as it were.

    If I’d been in the market for a new car this year I’m thinking I would have bought Ford.

  • sayanything-164

    While I agree that it’s good that Ford didn’t take bailouts, luck was definitely in their favor. They mortgaged every piece of property they own right before the credit crunch. They got private financing when it was available at reasonable rates, the other two waited too long until nobody would loan them money and their factories were worth half what they could have mortgaged them for two years prior.

    http://www.nytimes.com/2006/11/27/business/27cnd-ford.html?pagewanted=print

    You could argue that Ford was just plain smart, but it’s pretty silly to say that anyone knew for certain what the credit and property markets would do in 2008.

  • http://sayanythingblog.com robport

    I have a Yukon right now, and I’m pretty satisfied with it. Before that I had 3 F-150′s and I loved every one of them. When I had kids I went to a Ford Explorer for a while, but that proved just too small for us, so we got found a good deal on our Yukon a few years back.

    As of right now, I’m not buying GM (government motors) again.

  • sayanything-4744

    Well, GMAC is already there. Not quite the same thing, but still. Good money after bad.

  • sayanything-3444

    I was driving by a local Ford dealer here the other day and noticed a sign they had up:

    “Bankruptcy and Bailout Free”

    Gotta love it. If I was buying a domestic vehicle the only thing I would consider is a Ford.

  • sayanything-4056

    Purchased a new F150 in October and this was a large factor in my decision.

  • http://sayanythingblog.com robport

    I was driving by a local Ford dealer here the other day and noticed a sign they had up:

    “Bankruptcy and Bailout Free”

    I think that’s an angle they should have played up more. But maybe they’re afraid of angering Obama.

    I wouldn’t blame them if that’s the case.

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