Friday, August 24, 2007

Ford Begs Bailout Rate Cut from Federal Reserve

That Ol' Black Magic for the Bottom Line

Ford Motor Company Chief Executive Officer (CEO) Alan Mulally pleaded the Federal Reserve to cut interest rates (the Fed funds target rate).

Ford lost $12.6 billion last year and Mulally wants the Fed to flood the economy with cheap credit again so that consumers temporarily feel wealthier and spend more freely.

Feeling wealthier on an inflated bubble economy is what put so many people in the current mess in the first place.

Ford's petition for corporate welfare might not be much of a strategic plan but otherwise it would have to build good cars at a good price.


SavingDiva said...

I agree that Ford needs to put out a better product. In order to stay competitive, US car companies need to cut the fat and create a solid product...not have consumers going into debt to purchase super big trucks that need a lot of expensive gas!

J at IHB and HFF said...

Hello. Maybe you can replace Mulally.

Thank you for the visit and the comment.