Marathon Pundit: Obama visiting Chicago Ford plant--He's had nothing to do with company's success

Thursday, August 05, 2010

Obama visiting Chicago Ford plant--He's had nothing to do with company's success

Right now President Obama is visiting a Ford plan on Chicago's South Side. He's had nothing to do with the automaker's recent success. In 2007, Ford's CEO spanked then-Senator Obama, who had the audacity to criticize Big Three automakers for not making enough hybrid cars--while he was driving a gas-guzzling V8 Hemi-powered Chrysler 300C.

I own a Ford, by the way.

From a Republican National Committee research briefing:

"President Barack Obama will talk about the successful restructuring of the auto industry, the administration's efforts to encourage exports and fuel efficiency when he visits Ford's assembly plant in Chicago on Thursday." (Brent Snavely, "Obama To Visit Ford's Chicago Plant," Detroit Free-Press, 8/4/10)

FORD DID NOT TAKE BAILOUT MONEY

Unlike GM And Chrysler, Ford Did Not Accept Any Taxpayer Bailout Funds. "Ford is not accepting any government bailout money, in contrast to its two crosstown rivals. It is taking every opportunity to highlight the difference, even as it searches for ways to match some of the cost-cutting structural changes at G.M. and Chrysler." (Bill Vlasic, "Ford Rejects Big Cuts In Dealer Network," The New York Times, 5/18/09)

Obama Engaged In "High-Stakes Gamble" With $30 Billion Bailout Of GM. "The bankruptcy filing, encouraged by the Obama administration, is a high-stakes gamble that GM, with the help of another $30 billion in U.S. taxpayers' support, can emerge as a smaller, more nimble company free from the debt and other burdens that long have plagued it." (Kevin G. Hall, "General Motors Files For Bankruptcy Protection," McClatchy Newspapers, 6/1/09)

"President Barack Obama Shepherded Chrysler Into A Historic Bankruptcy Yesterday, Backed By More Than $8 Billion In New Government Aid Designed To Allow A Partnership To Emerge In 30 To 60 Days." (Justin Hyde, "Chrysler Turns To Bankruptcy," The Columbus Dispatch, 5/1/09)

AND IS NOW SUCCEEDING

CNBC's Jim Cramer: "'There Are Still Bright Spots In This Dark And Gloomy Market,' Cramer Said Wednesday, 'And One Of Them Is Ford.'" (Tom Brennan, "Mad Money Interviews Ford's Mulally," CNBC, 7/30/10)

Ford Will Add Almost 2,000 Jobs To Its U.S. Plants By 2012. "Ford Motor Co. Ford announced this morning that it will have added close to 2,000 jobs at its U.S. plants by 2012, including 635 still to come. The 1,975 United Auto Workers jobs, dating back to 2008, will exceed Ford's commitment as spelled out in the 2007 Collective Bargaining Agreement by more than 25 percent." (Alisa Priddle, "Ford: 635 New Jobs To Bring Total To 1,975 At U.S. Plants By '12," The Detroit News, 8/4/10)

"So Far In 2010, Ford Has Booked A Profit Of $4.6 Billion. That Total Alone Would Make This Year The Best Since Ford Earned $7.24 Billion In 1999." (Mattew Dolan, "Ford Gears Up For Best Year In Decade," The Wall Street Journal, 7/23/10)

Ford Had Better Than Expected Second Quarter Earnings. "Less than a year after the U.S. auto industry was gripped by peril, Ford Motor Co. has put itself on pace to post one of its largest annual profits ever.On Friday, Ford reported better-than-expected earnings of $2.6 billion for the second quarter, up 15% from a year earlier as a result of rising vehicle sales and higher pricing on the cars and trucks it sells in North America. It was the company's fifth consecutive quarter in the black, and the most profitable in the string." (Mattew Dolan, "Ford Gears Up For Best Year In Decade," The Wall Street Journal, 7/23/10)

"Ford Shares Have Been On A Tear, Nearly Doubling In The Past Year. The Automaker Has Finally Turned A Profit, Delivering Four Consecutive Quarters Of Income Growth, The Longest Streak Since 2005." (Lulu Chiang, "Stock Brawl: Focus On Ford," CNBC, 7/13/10)

Ford Paid Off $7 Billion In Debt In The Second Quarter. "The company today announced it will pay down $4 billion in debt, including $3.8 billion to the United Autoworkers Retiree Medical Benefits Trust and another $255 million to previously deferred quarterly distributions on Ford's preferred stock. That puts the total debt paid off at $7 billion in the second quarter alone." (Tom Brennan, "Mad Money Interviews Ford's Mulally," CNBC, 7/30/10)

MEANWHILE TAXPAYERS ARE STILL ON THE HOOK FOR GM

Taxpayers Still Own 60 Percent Of GM. "The two auto makers still face substantial challenges. GM's repayment was a fraction of the $50 billion that the company received from the U.S. government last year. The big payback won't come until GM goes public and the U.S. can begin to sell off its 60% stake in the company." (Sharon Terlep and Jeff Bennett, "Car Makers Stabilize Year After Bailouts," The Wall Street Journal, 4/22/10)

Taxpayers Own 60 Percent Of GM, As Result Of Obama's GM Bailout."Nevertheless, the plan poses significant political risks for his administration. Obama is gambling billions that GM can rise again after years of decline. The success or failure of that investment will be easily measurable based on the company's eventual share price. The United States is slated to own 60 percent of the stock." (Peter Whoriskey, Tomoeh Murakami Tse and Kendra Marr, "U.S. Bets Billions ON GM's Resurgence," The Washington Post, 6/2/09)

The Small Amount GM Did Pay Back Taxpayers Was Done By Using Taxpayer Money. "The issue came up yesterday at a hearing with the special watchdog on the Wall Street Bailout, Neil Barofsky, who was asked several times about the GM repayment by Sen. Tom Carper (D-DE), who was looking for answers on how much money the feds might make from the controversial Wall Street Bailout.'It's good news in that they're reducing their debt,' Barofsky said of the accelerated GM payments, 'but they're doing it by taking other available TARP money.' ... 'It sounds like it's kind of like taking money out of one pocket and putting in the other,' said Carper, who got a nod of agreement from Barofsky." (Jamie Dupree, "GM Money Game," The Atlanta Journal - Constitution, "Jamie Dupree's Washington Insider," Blog, 4/21/10)