The bottom line on Paul Ingrassia’s article in today’s Wall Street Journal, How Ford Restructured Without Federal Help
The company is now at a disadvantage to its less prudent rivals.?
If you are going to choose a vehicle made by Chrysler, GM, or Ford, buy Ford:
You can see where this leaves us. Ford has about $26 billion in automotive debt — about the same as GM’s $27 billion. Ford’s debt is secured by its assets. And secured lenders must be repaid — unless they happen to be Chrysler lenders and get clipped by a company bankruptcy plan that’s backed by President Obama.
So Ford is like a homeowner who planned prudently and can pay his mortgage, while his spendthrift neighbors get their mortgage reduced by some new federal program.
On top of that, bear in mind that “the government is going to take care of your [GM/Chrysler] warrantees“.