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The U.S. Department of Energy (DOE) announced that it will be giving Ford a $9.2 billion loan to build electric vehicle (EV) factories.
This loan, which Ford will be using to build three separate factories, will substantially increase the American car manufacturer’s capacity for building vehicles that do not rely on gas.
“Not since the advent of the auto industry 100 years ago have we seen an investment like that,” Gary Silberg, global automotive sector leader at the accounting firm KPMG, told Bloomberg.
The U.S. Department of Energy (DOE) announced that it will be giving Ford a $9.2 billion loan to build electric vehicle (EV) factories.
This loan, which Ford will be using to build three separate factories, will substantially increase the American car manufacturer’s capacity for building vehicles that do not rely on gas.
“Not since the advent of the auto industry 100 years ago have we seen an investment like that,” Gary Silberg, global automotive sector leader at the accounting firm KPMG, told Bloomberg.
I think we all knew some kind of a bail out was coming. Ford has problems.They can call it what they want.
Quote:
Originally Posted by Ruth4Truth
And people complain about "welfare queens".
SMH. I wouldn't call a loan a "bailout". The "bailouts" during the 2008/9 recession were done because GM and Chrysler would have gone under without them due to their poor cash flow planning. And those were "bailouts". By the way, back then Ford already borrowed the funds they needed so they did not take a bailout. With a huge loan for like $4B. They did it the right way, which actually resulted in a big disadvantage to them in the ensuing years because they needed to pay back their loans whereas GM and Chrysler did not have to, they got a free pass, albeit with some gov't interference due to the strings attached. Nobody remembers that I guess.
But this situation is a $9.2 billion LOAN, right? That they must pay back, right? How is that a bailout? Ford could have gone and got a loan from commercial banks for it, but $9.2B is a lot of money, and rates are high. It would take multiple banks and seems like it would be nightmare to construct a funding pkg like that. IF they could even do it.
I mean, they are building THREE NEW PLANTS. So the gov't does it because they want Ford to build these THREE factories in the US, and generate the jobs they will bring. It's better than a tax incentive, which is done over and over when cities and states practically bribe companies to build their plant in their town by giving them huge incentives. That they never pay back. They just avoid paying taxes for a while. Which companies do all of the time. That's not what this is. And Ford gets criticism for taking out a LOAN.
Part of this is surely the objection in principle to the EV, period. I mean, do people hate US automakers that badly, where they just criticize EVERYTHING? Do you want them to fail so we have to buy foreign cars? Just hold their feet to the fire and make them do it the hard way, during an unprecedented switch from ICE to BEV vehicles. That is being mandated by the gov't. So Ford is supposed to just weather all of this themselves and fund everything independently. Don't give them any help. Screw them, right? Do you not care about American jobs? I know, US cars have foreign parts, blah, blah, blah, but I for one do not want to see a world where we have no US automakers anymore. I think we can loan them some money, that they will pay back with interest.
Why wouldn't Ford be applauded for this commitment? “Not since the advent of the auto industry 100 years ago have we seen an investment like that”. This is Ford making this investment, by taking out a loan.
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Last edited by KO Stradivarius; 08-31-2023 at 11:33 PM..
"Welfare Queens" don't get loans, they get fraudulent handouts.
Sure, like that Auto Industry Financing Program that was part of TARP when the government never was paid, or sought payment, on 9 Billion of the 80+ billion "loans" given to automakers.
Talk about Fraudulent Handouts. Lets call it a loan, but never even try to get it back.
They need to focus on building small affordable EVs (like maybe an Escape EV) and not $80k Lightnings that few can afford, or even want.
Yes 100 times Yes. In fact, why not "focus" on building something like a Ford Focus or Ford Fiesta or Ford Fusion hatchback car priced under $25K. These loans are taxpayer money, of rich and poor taxpayers.
I really dislike big loans like this from the government to any private company.
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