Ford teaches GM, Chrysler, and Washington that trade is better than state-aid
By Timothy Cox
Thursday, November 5, 2009
Ford is leading the way by selling cars, not by relying on governemnt bail-outs. After having posted a third quarter profit of almost $1 billion, and with over $13 billion in revenue from the North American market alone, Ford has proven how businesses, not bureaucrats, are best suited to providing products that people actually want. Moody’s immediately upgraded Ford’s credit ratings based on this recent news.
Yet perhaps the most important lesson is to observe how Ford’s two biggest “American” competitors, Chrysler and General Motors, who have been bailed out by Washington to the tune of $80 billion in tax-payer support, continue to struggle. As if the auto-subsidies weren’t bad enough, Chrysler and GM’s favouritism has obstructed the market for automobiles and, worst of all, infuriated trade partners.