Ford (F) Owes the Gov't Billions in Taxpayer Money
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Coming off of a nine-session winning streak, Ford (NYSE: F) is looking great again Thursday morning. But that could change soon.
According to reports from local media the Detroit Free Press, Ford might be in the hole with an unlikely financier: the federal government.
After crowing for two-years about not taking bailout funds, Ford is under the microscope for taking about $5.9 billion in June 2009 from the U.S. Department of Energy to retool some 11 plants in five states. Ford is said to have drawn-down about $4.5 billion to-date, however.
Ironically, neither General Motors (NYSE: GM) nor Chrysler, LLC, took loans from the DoE. The duo did file for loans in 2008, but did not qualify under the condition of being viable companies. The DoE presumably kicked GM and Chrysler's dog on the way out, too.
Others getting DoE loans include Nissan (OTCBB: NSANY) at $1.4 billion, and Tesla (Nasdaq: TSLA) at $465 million.
Since getting bailout funds, GM has cancelled its application for $14.4 billion of funds, focusing more on repaying the balance of its $49.5 billion bailout. Chrysler is still waiting for approval of its application for $7 billion or so of funds.
Still, Ford has been in the limelight for not needing government assistance. The situation might be different than receiving emergency funds to continue operations, but some critics might still berate Ford not disclosing receipt of the monies.
To Ford's defense, however, the investments would have probably been made anyway, but the DoE loans accelerated initiatives to get more fuel efficient vehicles on the road.
Ford is indicated for a higher open Thursday.
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According to reports from local media the Detroit Free Press, Ford might be in the hole with an unlikely financier: the federal government.
After crowing for two-years about not taking bailout funds, Ford is under the microscope for taking about $5.9 billion in June 2009 from the U.S. Department of Energy to retool some 11 plants in five states. Ford is said to have drawn-down about $4.5 billion to-date, however.
Ironically, neither General Motors (NYSE: GM) nor Chrysler, LLC, took loans from the DoE. The duo did file for loans in 2008, but did not qualify under the condition of being viable companies. The DoE presumably kicked GM and Chrysler's dog on the way out, too.
Others getting DoE loans include Nissan (OTCBB: NSANY) at $1.4 billion, and Tesla (Nasdaq: TSLA) at $465 million.
Since getting bailout funds, GM has cancelled its application for $14.4 billion of funds, focusing more on repaying the balance of its $49.5 billion bailout. Chrysler is still waiting for approval of its application for $7 billion or so of funds.
Still, Ford has been in the limelight for not needing government assistance. The situation might be different than receiving emergency funds to continue operations, but some critics might still berate Ford not disclosing receipt of the monies.
To Ford's defense, however, the investments would have probably been made anyway, but the DoE loans accelerated initiatives to get more fuel efficient vehicles on the road.
Ford is indicated for a higher open Thursday.
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Ford
I have no respect for Ford for making ads stating they did not take any money from our Government whereas GM and Chrysler have.
http://www.freep.com/article/20120112/BUSINESS0102/201120601/Ford-not-GM-or-Chrysler-got-federal-loans-to-retool-plants
http://jalopnik.com/5704575/ford-bmw-toyota-took-secret-government-money?skyline=true&s=i
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Ford
Max on Jan 18, 2012 04:08 PMMark as Spam | Reply to this comment
These were Loans, with an interest rate being charged, you bonehead. A big difference between a loan and a bankruptcy induced bailout.