How Ford Survived The Great Recession

Many argue that ford needed the funds to sustain its cash flow during the recession.

How ford survived the great recession. The automotive industry crisis of 2008 2010 was a part of the financial crisis of 2007 2008 and the resulting great recession the crisis affected european and asian automobile manufacturers but it was primarily felt in the american automobile manufacturing industry the downturn also affected canada by virtue of the automotive products trade agreement. Ford nyse f just years ago ford. The big three in detroit are fighting for a piece of the bailout pie. General motors corp chrysler llc and ford motor co.

Ford says it was in better shape than the other two because it had mortgaged its assets in 2006 to raise 23 6 billion. In an attempt to catch up ford rushed a new v8 model to market in 1932. The venerable automaker survived the great recession and went on to grow and thrive during the long bull market that followed. Because of the money it borrowed nearly three years ago ford is in far better shape than its two crosstown rivals gm and chrysler.

Ford motor s up by the bootstraps story of survival during the great recession has been well documented. Today the company faces another demand shock in the form of the. The letters i got and continue to get are incredible ford says. And its success is not just because ford motor co.

Ford survived the great depression of course but not without scars. Instead ford received and still receives letters of support from small business owners and operators who admire ford s ability to get his company through the recession without the need for taxpayer dollars. Government or declare bankruptcy its success is not just because company made a daring move to mortgage all of its assets in 2006 including the blue oval presciently giving itself a cash cushion at a time when cash would soon be in short supply. F fortune 500 alone among detroit s big 3 didn t take tarp money from the u s.

However the new model was poorly positioned for the value conscious great depression market it was both more expensive and less reliable than its competitors. Here are six companies that survived the recession and the secret to their success. It used the loans to retool its product lineup to focus on smaller energy efficient vehicles. The loans have kept it independent and on a course to survive.