Ford Jr: "Loans to GM and Chrysler saved the US Economy"
Finally, the truth comes out. When dissecting the U.S. Government’s decision to bail out both General Motors and Chrysler from the mountain of debt they have incurred throughout the years, it’s easy to point out that Uncle Sam could’ve had ulterior motives in doing this. Perhaps a national stake in ownership of the future automotive conglomerates is what they are looking for?
Yet, when you look at the big picture – we mean the really big picture – you’ll understand that there was a lot more to the deal than meets the eye. Ford Motor Company Executive Chairman Bill Ford Jr. nailed the bull right between the eyes when he said that it wouldn’t just be GM and the pentastar that would suffer if the government hadn’t decided to step up and rescue them. According to Ford the second, the entire automobile industry would’ve taken a very, very serious hit. “It would have been so catastrophic to have a supply-base meltdown because it would have brought down all the auto manufacturers and frankly some other industries as well," Ford Jr. told CNBC TV.
“The United States would’ve been in a lot of trouble if Chrysler and GM were left for dead.”
In so many words, Ford even went as far as saying that the entire U.S. economy would have plummeted if Chrysler and the General went under. If the government hadn’t taken the steps it did, then the bankruptcies would’ve caused a complicated – and maybe cataclysmic – chain of events that would lead to other industries filing their own Chapter 11s, the most affected industries being those with vested interests in the auto industry, including those who supply both GM and Chrysler with the parts they need to build their lineup of cars. It’s a simple case of supply and demand. When there’s absolutely no demand for these parts, why even bother generating any supplies.
It’s easy for all the skeptics to point out that the US government only made the move bailout the automakers for their own self-serving interests; but Henry Ford Jr couldn’t have made the truth clearer when he said, “The United States would’ve been in a lot of trouble if Chrysler and GM were left for dead.”