Video: The revolutionary auto plant Ford built in Brazil, but can't in America because of the UAW...

Suppliers liens are located in the same plant and integrated into Ford's line.  If a U.S. supplier visits some UAW plants in the U.S. over a quality problem, they can't even pick up one of their defective parts and carry it to the door. A UAW flunky has to do that.

Ford's Joint Venture assembly plant in Brazil

Priceless: New Ford ad blasts bailouts (video)

Not only wasn't Ford bailed out by taxpayers, they haven't gotten the same UAW concessions that were granted to GM and Chrysler. In-spite of these handicaps, they are still kicking butt. They have every right to crow about it.

Ford buyer Chris in ad:

“I wasn’t going to buy another car that was bailed out by our government. I was going to buy from a manufacturer that’s standing on their own: win, lose, or draw. That’s what America is about is taking the chance to succeed and understanding when you fail that you gotta’ pick yourself up and go back to work. Ford is that company for me.”

MSM Finally Realizes Consumers are Supporting Ford and Shunning GM, Chrysler

Ford reported a surprising third quarter profit of $1 billion. Ford sales have been much stronger than GM and Chrysler since the auto manufacturing takeover by Team Obama. Common sense says that Americans are rewarding Ford and shunning UAW owned Chrysler and government owned GM. Now, the mainstream media can no longer continue to ignore the facts.

From NewsBusters:

In the eighth paragraph of their article covering October's auto sales, AP reporters Tom Krisher and Dee-Ann Durbin recognized part of the reason -- and perhaps the most important reason -- why Ford has been cleaning the clocks of General Motors and Chrysler all year long:

Ford has benefited from consumer goodwill because it didn't take government bailout money or go into bankruptcy protection, as General Motors and Chrysler did.

Ford will be hampered by a competitive wage disadvantage for the next two years. The UAW membership refused to give Ford the same concessions they gave the bailed out auto manufacturers. One of the criticisms of giving the UAW such a large stake in bailed out Chrysler and GM was the UAW would have little motive to give Ford a good contract when they owned significant parts of Ford's competitors. This seems to be coming to fruition more quickly than anyone imagined.

Greedy UAW Workers Reject Ford Contract

Ford is the only American auto manufacturer that didn't have to take bailout money. The reasons are better management and a large loan secured before credit dried up. The UAW gave concessions to GM and Chrysler as part of the bailout reorganization. Ford was seeking parity in their contract with the UAW. Union members rejected their own leaderships advice and rejected the modified contract. Now, Ford will be at a competitive disadvantage for the next two years. This points back to one of the main causes of GM and Chrysler needing a taxpayer bailout. UAW members vote for greed above common sense.

From Yahoo News:

Ford Motor Co. workers have overwhelmingly rejected contract changes that would have allowed the automaker to cut labor costs, leaving Ford at a disadvantage to its Detroit rivals as it continues its struggle to return to profitability.

The United Auto Workers union had given local unions until Monday to complete voting. But a person briefed on the voting said Saturday that the contract changes have been rejected by large margins. The person asked not to be named because the UAW hasn’t announced the results yet.

Ford drives ahead while GM and Chrysler stall

In what may be a backlash against the government takeovers of GM and Chrysler in a plan to save the UAW at the expense of secured creditors, Ford sales are much stronger than either GM or Chrysler. Many Americans are angry at what amounts to the nationalization of GM and the handover of Chrysler to the UAW. They want to buy American and Ford is benefiting from their sentiment.

From the Washington Times:

"Government Motors" is driving Americans away.

There is a groundswell of disdain for the federal bailouts of General Motors and Chrysler, even as polls show that a growing "Buy American" sentiment is boosting sales for the only Detroit automaker that avoided bankruptcy and federal rescue - Ford.

GM and Chrysler say some buyers are coming back to support them, even trading in their Mercedes for Chevrolets.

But it is bailout opponents who are the most visible - and audible.

Conservatives thunder that the country has taken a socialist route with President Obama at the wheel.

"I won't buy a socialist car," columnist and radio talk-show host Hugh Hewitt thundered last month.

Others agree - at least about GM.

"Over the years, we have mostly been a General Motors family. Since GM has become Government Motors, we will never again buy a GM product," said William Crowley of Spicewood, Texas.

It's not just conservatives who are turning away from two of the Big Three. The bailouts were opposed by most Americans, including substantial minorities of Democrats surveyed in March and June polls, according to Gallup.

"You could say even Obama supporters don't like [it]," said Jeremy Anwyl, chief executive officer of car-buying site Edmunds.com. "I'm not sure you can put a party label on it."

Here is a list of June U.S. sales for most major auto manufacturers:

▼ 28% Industry total, 872,877 units from 1,212,933 units a year ago.

▼ 5% Kia, 26,845 units vs. 28,292 units
▼ 11% Ford, 148,153 units vs. 167,090 units
▼ 15% Volkswagen, 26,551 units vs. 31,411 units
▼ 20% BMW, 20,849 units vs. 26,155 units
▼ 23% Nissan, 58,298 units vs. 75,847 units
▼ 24% Hyundai, 37,943 units vs. 50,033 units
▼ 26% Mercedes, 16,271 units vs. 22,121 units
▼ 30% Honda, 100,420 units vs. 142,539 units
▼ 32% Toyota, 131,654 units vs. 193,234 units
▼ 33% GM, 175,792 units vs. 264,065 units
▼ 42% Chrysler, 68,297 units vs. 117,457 units

Ford sales are only down 11% compared to 33% for GM and 42% for Chrysler.

The "Big Three" are sinking and Barack Obama fires a salvo of torpedoes

The "Big Three" are under bankruptcy watch and begging for more bailout money. President Barack Obama thinks this is a good time to appease his environmental base by weighing Detroit down with a new round of environmental regulations. This is horrible timing and it will severely damage the ability of the "Big Three" to return to profitability. The first increase in CAFE will take place by the 2011 model year. Detroit is now preparing to launch the 2010 model year in July. That is when they change their factories over and begin production of the next years model. They will have only a little over a year to prepare for this change. How will they do it? The easiest solution to raise the fleet millage averages would be if people bought more small and compact cars. That is unlikely unless gas returns to $4 per gallon. They will be forced to cut prices on compact cars to induce more of the public to buy them. The problem is they are already losing money on these cars and can not change that unless the UAW agrees to severe concessions. The UAW (see a UAW contract here) is resisting that solution. The other method is to increase the mileage on the same size car. That takes time and money. It takes expensive new technologies to improve engine mileage without sacrificing power. The "Big Three" are working on this, but no major breakthrough will occur in the next year. The other method is to make vehicles lighter. This requires higher tensile steels and stronger alloys. These materials cost more money and may require different manufacturing processes. All these things will make automobiles more expensive for consumers. Consumers are currently not buying cars and trucks. This isn't because they don't want them or need them. They simply can not afford them in today's economy. If they can not buy them now, they will not buy them when the price is increased by a few thousand per vehicle. The decision to let California decree the emission standards will have a similar effect of raising vehicle prices. Barack Obama may have good knowledge of politics, but he is ignorant of the realities of the automotive industry. The bailout of the "Big Three" will fail. We should stop calling it a bailout. Let's be honest. We will have to "subsidize" the "Big Three" for years under an Obama Administration.

Obama May Let States Set Emissions Standards

Monday, January 26, 2009

President Obama is continuing his reversal of Bush-era policies, issuing two memoranda on Monday that promote his clean-energy policy while having a far-reaching impact on the ailing U.S. auto industry.

The first memorandum will order the Transportation Department to work out rules for automakers to improve fuel economy. It will call for the department to notify automakers by March 2009 to increase their fuel efficiency for 2011 model year cars and trucks.

The second memorandum will order the Environmental Protection Agency to reconsider California's request for a waiver from the Clean Air Act -- a move that would allow California, the nation's most populous state, to set tougher tailpipe emission standards than apply nationally. Excerpted from FoxNews.com

The GM, Chrysler, UAW bailout out is doomed to fail

The UAW bailout is underway now. The Bush administration has decided to loan billions to GM and Chrysler to keep them afloat for a few more months. By some estimates, this money will run out by the end of March. They are supposed to become financially viable by March 31. They have been instructed to negotiate with debt holders, suppliers and the UAW. I believe the debt holders will play ball. The supply base has already been wrung dry by years of cost reduction demands. They have little to bring to the table. The UAW is already squealing about this plan being unfair to them.

And while the United Auto Workers said the plan would keep factories running, the union said it was upset by loan conditions "singling out workers."

"We will work with the Obama administration and the new Congress to ensure that these unfair conditions are removed," said Ron Gettelfinger, president of the UAW.

Gettelfinger is upset about the Bush administration's direction for wages to be brought in line with the transplants by 2009 year end. He is counting on Obama and a Democratic Congress to protect him. He is probably correct. The Obama administration will throw another 30~50 billion at the Big Three and refuse to force the UAW to get serious about helping cut costs. They will attach a bunch of environmental rules to force GM and Chrysler to build small fuel efficient vehicles in a market where gas is $1.49 a gallon.

Green Cars for Cheap Gas?
December 14, 2008
by Dennis Avery

Now we're going to give Ford, GM and Chrysler billions of dollars so the Feds can order them to build more "green" cars-with gas
now costing $1.49 per gallon. How many Americans will pay $30,000 for one of these new high-mileage lightweights instead of getting a family-protective SUV for the same bucks? Or a pickup to pull the boat? At $1.49 per gallon, not many. So Detroit will go broke again, unless the Feds slap on another $3 per gallon in gas tax.

Haven't we just been there? And we didn't like it much. We demanded, "Drill, baby, drill." We forced a liberal Democratic Congress that hates oil to end the drilling ban on public lands. Thus, we could pump more domestic gas and oil and bring down the price-so Detroit's old lineup of SUVs and big pickups would sell again.

Which way are we going? And why?

My sister is a GM widow in Michigan; I understand the problem of Big Three pensions and medical insurance. But that doesn't really have much to do with the sort of cars we build. The costs the United Auto Workers saddled onto the Big Three years ago makes their cars non-competitive today no matter how tiny and fuel-efficient they get. Link here.

The big winner in this bailout may be Ford. They could get a piece of any cost reductions that take place and they won't be bound by any of the restrictions placed on the companies that took bailout money. If gas prices stay low, people will start buying more trucks and SUV's. Those products are Ford's bread and butter.