ow FORD is getting into the loan program

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Originally Posted By: Quattro Pete
Originally Posted By: eljefino
If the interest weren't better than they could get on the open credit markets, they could have just gotten private loans.

Yup. Private investors would have wanted a hefty return rate on a risky investment, and rightly so.
Why would private investors want to touch it since the capital will not be secure.

Someone just needs to say to the investors you take this deal.

Normal business has been disrupted since the end of Jan 2009 and NO investor has TRUST in the system anymore.

Again, once you get the devil into the works, you've screwed it up forever.
 
Originally Posted By: Ben99GT
GM couldn't get private loans two years ago.
For a REASON...

They were going down the drain. Between the idiots in managment and the unions who would want to invest.

Those "evil" rich people (the ones that give people jobs) don't want to throw away their money. They want to make sure they get it back with some extra money.

Now, they can just do the "Patriotic"
smirk2.gif
thing every quarter of the year....

Bill
 
While I agree that government involvement in businesses isn't what this country is about, if I were in Ford's or Nissan's position I would definitely take advantage of low interest loans if they were offered. I can't blame Ford or Nissan here, they aren't taking this money as a result of mismanagement. What I can do is take up the issue with my local representative in the next election (who happens to be a Dem
wink.gif
).

How do you feel about the subsidies granted by the southern states to import manufacturers in order to "lure" them?

If you refuse to purchase from a company that has taken advantage of the US taxpayer, I think you are stuck with brands that have no market presence in the US.
 
I have no problem if a STATE wants to offer incentives (like a discount on FUTURE taxes) to get a industry into their state.

If they are giving $$ up front (paying for the land, building or etc) then I have a problem.

I do have a MAJOR problem with what GM *HAS* done for example. You think this is the last we will hear from GM? All their problems are done?

Just the start....

Bill
 
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No, but it does offer some perspective. Something your OP was sorely lacking.

[censored], you even said Ford was getting $25 billion, when Ford, Nissan, Tesla, and about 75 other as of yet unnamed companies are getting $25 billion. I think you really thought this was a bailout in the same vein as GM and Chrysler's. Except it isn't...at all.

Now who is the one spinning here? The guy who is making inaccurate, sensationalistic attention grabbing posts or those offering facts? Hmmm...I wonder.
06.gif
 
No spinning here I just posted what they have posted on Fox Bussiness....Thats it.... The bottom line it is a loan from the GOV...because a bank would not take the risk with FORD....
 
Originally Posted By: rszappa1
No spinning here I just posted what they have posted on Fox Bussiness....Thats it.... The bottom line it is a loan from the GOV...because a bank would not take the risk with FORD....


Please provide evidence that a private bank would not take a risk with Ford. More sensationalist [censored] from you.

The Gov't passed this $25B FUND before Ford applied for it. Ford, Nissan, etc. would be foolish to pass up low interest loans that help them in retooling for the government's recently accelerated CAFE requirements.

Ford and Nissan are taking advantage of a fund that was created specifically for this purpose, they aren't being bailed out. If you don't like it, vote your local rep out in the next election. But Ford and Nissan are just playing the cards dealt them. Unlike the GM and Chrysler bailout, the government will be getting their ATVM loan back plus interest.
 
Originally Posted By: Bill in Utah
Why would private investors want to touch it since the capital will not be secure.

Well, the higher the return potential, the riskier (less secure) the investment. In this case, both were just too high.
 
Originally Posted By: Ben99GT

The Gov't passed this $25B FUND before Ford applied for it. Ford, Nissan, etc. would be foolish to pass up low interest loans that help them in retooling for the government's recently accelerated CAFE requirements.

Ford and Nissan are taking advantage of a fund that was created specifically for this purpose, they aren't being bailed out. If you don't like it, vote your local rep out in the next election. But Ford and Nissan are just playing the cards dealt them. Unlike the GM and Chrysler bailout, the government will be getting their ATVM loan back plus interest.

This sounds all well and good but it's yet another way for the gov. to get further into the control of private companies. These are not blanket loans. They are only loaning money to these companies to do what the government wants.

If they pay the money back or not, this is not free market capitalism.
 
I think its a good idea Ford, Nissan, etc accepted these loans. It's the gov't which is demanding private enterprise develop these new technologies, and since that's the case, gov't can help fund the R&D costs associated with the technologies.

Historically, the gov't changes regulations and forces the cost of development onto business, who in turn pass those costs on to the customer. If gov't really wants force new CAFE standards on the automakers, fine... they can pay for it. Either way, taxpayers are going to get the bill, we might as well get the product, too.

The automakers will have to find a way to generate a profit from these new cars, but they shouldn't have to absorb 100% of the cost of a gov't mandate.
 
Originally Posted By: bretfraz
I think its a good idea Ford, Nissan, etc accepted these loans. It's the gov't which is demanding private enterprise develop these new technologies, and since that's the case, gov't can help fund the R&D costs associated with the technologies.

Historically, the gov't changes regulations and forces the cost of development onto business, who in turn pass those costs on to the customer. If gov't really wants force new CAFE standards on the automakers, fine... they can pay for it. Either way, taxpayers are going to get the bill, we might as well get the product, too.

The automakers will have to find a way to generate a profit from these new cars, but they shouldn't have to absorb 100% of the cost of a gov't mandate.

These are loans, that they have to pay back (presumably), with interest. What do you think that will do to the price of a car?

This is no gift. It's government making a profit from their own mandates. How sweet is that for them? How cruddy is it for us?
 
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