Ford Restructuring: A lesson for those who refer to "Corporate Welfare"

[Longhorn85]

Ford is in business to make profits. Shareholders demand that they adapt and change in order to compete with other automakers. In order to remain profitable unfortunately thousands of workers are about to be layed off. Of course no city wants to be the one to lose a plant so we see remarks like this in today's news:

<snip>

States have been scrambling to offer tax credits and other incentives to keep Ford from closing their facilities ever since the automaker said last fall that it was developing a restructuring plan.

http://www.breitbart.com/news/2006/01/23/D8FAEQIO1.html


Is this what some refer to as Corporate Welfare? To me it is local govt recognizing that a company like Ford provides great value to a community in terms of jobs, tax base, drawing other business etc.

Offering incentives is a way to preserve jobs and a smart thing to do, not a form of welfare, IMO.

 

[manny78]

If at the end of the day, these jobs kept bring more money in the govt. vaults then it's not really corporate welfare. This last concept is more when, for sentimental/historical reasons a government will subsidze a company/industry which is far from being competitive (agriculture is one....).

 

[big4life]

Yet Ford and GM keep making over sized SUV's that consumers can't afford to drive because of gas prices.


Maybe the shareholders should demand they start exploring new ideas, instead of rehashing the same ideas. They need to be innovative instead imitating each other. Let's see, Ford had good sales with the retro looking Mustang, so let's see what car we can bring back from the basement. It's a lot easier than exploring new ideas and concepts.

No, it doesn't answer your question, but the idea that they are losing money because of the number of employees is insane. They are losing money because they can't think outside of some little design box. And all the tax breaks in the world isn't going to change that.

 

[bluepeter]

Make a better product and stop relying on patriotism to drive your profitability and problem solved.

 

[Raptorex]

a true American tragedy, just as in other loss of manufacturing in the US

 

[Longhorn85]

Yet Ford and GM keep making over sized SUV's that consumers can't afford to drive because of gas prices.


Maybe the shareholders should demand they start exploring new ideas, instead of rehashing the same ideas. They need to be innovative instead imitating each other. Let's see, Ford had good sales with the retro looking Mustang, so let's see what car we can bring back from the basement. It's a lot easier than exploring new ideas and concepts.

No, it doesn't answer your question, but the idea that they are losing money because of the number of employees is insane. They are losing money because they can't think outside of some little design box. And all the tax breaks in the world isn't going to change that.

SUVs have been profitable for many automakers, I don't know about Ford. They are doing exactly what you suggest, trying to adapt. That's why some plants are being closed.

 

[AAP]

Best thing about Ford was that slap in the face they delivered to the American Family Association last week.

 

[Longhorn85]

I never heard the Ford spokesperson say "layoffs"

I did hear him say, "we are reducing our salary costs"

 

[AAP]

I heard the spokesperson say "you don't tell us how to run our business" to the AFA.

 

[MattTheSkywalker]

Shitty cars = declining sales.