Still not a lot of good news to comment on. The state of the Union address is an easy target but is being talked to death. I know I can’t really add much to the conversation so I won’t. I did find this article tucked away in the Drudge Report this morning and it seemed interesting enough to comment on. Here’s the link to the story: Ford earns 2.7 Billion in 2009
The basic summary is that for the first time in four years the Ford Motor Company made a profit. The seem to be three major reasons for the profit this year. First, sales of popular cars made by Ford. Two, money that was brought in through their credit line to buyers. Three, using various cost cutting measures not specifically mentioned in the article, though probably related to union pensions.
Ford’s actions at this time last year at the reason why, if I have to buy a new car in the future I am buying a Ford. They knew they were in trouble and went the opposite course of everyone else at the time. Everyone else ran to the government for a bailout. Ford said no and went the harder more difficult route and are now prospering as best as they can. I don’t see any news about GM or Chrysler making profits and now they are owned by the government and their unions
Ford still has problems, as do all automotive manufacturers, with unions and many underfunded liabilities because of them that but there are solutions out there for those issues. Ford should live up to its part of the deals its made with the UAW, but the UAW should also contribute to make sure the programs are solvent. There are millions of dollars in the UAW given in dues. They need to step to help the company because if they don’t the company can go under and then all those jobs they provide to union members will be gone. (Side note: A post on the current state of unions seems like a good topic to address in the near future).
Not sure what else there is to say in this article. Please leave me your comment and questions. Have a nice day.