Ford's Auto Bailout Lesson: Consumers Like Rugged Corporate Individualism
By Peter Roff, Thomas Jefferson Street blog
It should come as no surprise, as Rasmussen Reports said Tuesday, that the recent government bailouts of General Motors and the Chrysler Corporation have affected public attitudes toward the U.S. automakers. But rather than pitch in to help the struggling manufacturers continue to stay afloat, 46 percent of Americans indicated to Rasmussen that they were more likely to buy a new car from Ford—if they were, in fact, buying a new car—because it did not take government money in order to keep its doors open.
Call it a competitive advantage for Ford. By staying away from the bailout, the company has potentially increased its share of the market place by a significant amount, especially among those who insist on "buying America" as a political statement.
Only 13 percent of those responding in the national telephone survey said Ford's refusal to request government assistance made them less likely to purchase a car from the automaker in the future. But that's less than the 19 percent of Americans who said that someone in their family or a friend chose not to buy from Chrysler or GM because of the government bailout.
In additional good news for the carmaker, 51 percent of those Rasmussen identifies as "investors" said they were more likely to buy a Ford, along with 41 percent of non-investors. Those working in the private sector were, by 11 points, more likely than government employees to purchase a Ford because it didn't seek a bailout.
Not so much by engaging in a rugged defense of the capitalist system, as founder Henry Ford might have done, but simply by staying out of the way, Ford has improved its public image. This may be a useful lesson for other large corporations—which many times act as though they believe doing things that work against their own interests, as when oil companies provide corporate support for environmental groups—about the way to the heart of the American public.
"The chief business of the America people is business," President Calvin Coolidge famously told the American Society of Newspaper Editors back in 1925. It is not, he might have added, looking for a government bailout.
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Reader Comments
I forgot one other Ford advantage
I forgot - and it's not owned in whole or in part by any screw-up governments.
Think about this AMerica and Canada - when it comes time for the two governments to exit GM and Chrysler - how do you think they plan on doing it?
Well thgey are going to sell shares to the public. Imagine that - after screwing all the shareholders and bondholders out of repayment (shareholders 100%) - they are going to ask us to take the two turkeys off their hands. Imagine that!!! Fool me once and that's ok, fool me twice and I must be a horse's ass.
The only decent thing to do for the governments of the US and Canada to exit these two turds (pardon my English) is to spin off the shares to every legal age citizen of the two countries because we already paid for it the second time with our tax dollars.
And that's the end of my story for tonight. Thanks for bearing with me.
buying Ford
I was a hard-core GM customer - owned and operated GM products for 35 years. But I have switched.
Ford quality is #1, safety - best in the business, design and options - top notch.
I like simple cars - not big and fancy - but I also like some decent options; power windows and door locks, airconditioning and cruies control, and a good sound system. The Ford Focus delivered beyond my best expectations. And the Sirrius satellite radio option is pure brilliance.
Let me tell you something else - I spent 10 years in the collision business (auto body repair) and I learned a few things about well put toegether cars. I have test driven a half dozen of the Ford Focus lately and I am impressed. The interior - not a single squeak or rattle - even over some pretty rough roads. The body assembly - good clean lines between all doors and body panels with ZERO observable variation. That's Mercedes Benz class my firends. ANd closing the doors - not only a satisfying, solid closing sound, but my ears indicate small "pressure" pops - that's solid building with lower error tolerances.
Ford - well done, very well done. And to show my faith in what's been accomplished, I bought 60,000 Ford shares (admittedly at a price a little cheaper than what it is right now).
Buy Ford
I have, as my grandson likes to call it, a big ass red Ford 350 dualie. It is a 2003 with the 7.3 litre V8 power stroke diesel. This is a kick ass truck. This is not the first Ford I have ever owned, and henceforth, when I buy again, it will be a Ford product. I am excited about Ford producing an electric plug in car in 2010. There is definitely a Ford in my future.
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