In defense of autonomy...

Blue Oval or Bow Tie?
It's time to embrace car partisanship. The perpetuity of Ford correlates directly to the prosperity of the American Dream.
First things first. With government intervention on behalf of GM, the deck is already stacked against Ford. GM has a potentially unlimited source of funding from taxpayers and the dollar factories where the Fed is printing money like toilet paper. Further, Obama is practicing unabashed protectionism and bowing to the UAW by restricting GM from importing popular European small cars to meet his "green" standards. GM's European subsidiary Opel is up for sale. Potential buyers will be restricted from selling them in the U.S. or China. A few years ago to make the Saturn brand more profitable and desirable GM imported rebadged Opels and sold them as Saturns. They were widely regarded as superior to previous Saturns, and many domestics in general. Obama apparently prefers mediocrity. Not to mention the enormous cost of retooling current factories to build what may be essentially the same small car.
Obama claimed today he does not want to run GM, yet reserved the right to exercise governments ownership rights in "all but the most fundamental" decisions. Decisions such as choosing board members, closing factories, eliminating dealerships, vehicle types and specifications. Obama is already making these decisions and will continue to do so. Any rhetoric to the contrary is simply that, empty rhetoric.
And don't forget the decision to shift towards much smaller "green" cars GM will now build at government's behest, whether or not the buying public wants them. My guess is they will be forced to "want" them.
Obama has stepped into a serious pile of conflicts of interest. Government has pumped tens of billions of taxpayer dollars into GM, and may continue to do so indefinitely. At the same time, government will continue to regulate safety, efficiency and the like for all cars sold in the U.S., not just the GM and Chrysler vehicles they are now building. That includes Ford, who did not take bailout money. The potential for favoritism, or preferential regulation, is precipitous, since as a shareholder government will expect a positive return on its investment. As just one example, the TARP bill included a $7,500 tax credit for purchasers of the Chevy Volt, GM's expensive forthcoming plug-in hybrid electric car. Obama will try to subsidize his way success with GM, perhaps at the expense of Ford.
For all of Obama's machinations, we, as consumers, still have power. If the President can choose sides, so can we. It seems there are signs that we are. According to a Wall Street Journal article today, Ford has seen its market share increase over six of the last seven months, and that trend is expected to continue when May numbers are reported Tuesday. Ford also plans to increase production in the third quarter. Ford was in better shape to weather the economic storm than its rivals, having borrowed and raised operating capital in 2006, which cushioned the blow of the recent economic troubles.
There is no question, however, that the road will be difficult for Ford. Their profit leader is a large truck. They must also comply with the new fuel economy standards. As the Last American Car Company, their competition is now the United States government with all its interest groups, constituencies and other assorted wards of the state.
They also have a large number of American consumers on their side who still remember what free enterprise and a free-market economy meant for prosperity. It meant if you had a dream and followed it, if you had a good product you wanted to share with others, or a service you could better provide, you could achieve success and prosperity. You could build a better life for yourself and your family. You could get the big house with a big back yard and the nice car that you could wash, wax, and detail in your driveway every Saturday afternoon without worrying about competition the entire United Stated federal government, who can print money.
Fundamental business decisions should not be made by government. They should be made by autonomous businesses, not beholden to interest groups as political payback. They should be guided by consumer demands and market compliance, not ideological scientists and sheltered academics.
A business unfettered by government intervention is a free business, free to make its own decisions. Autonomous, it is free to succeed or fail on its own merits. Free to reap rewards, free to suffer consequences, free to learn from mistakes, free to try again. Free to pursue excellence.
Until GM and Chrysler are able to break the shackles of government bureaucracy dictating their every move, GM and Chrysler will never be free. They will always be beholden to a clumsy, inefficient leech whose unlimited funding ensures unlimited control. Indentured servants of the state.
From an article on Marketwatch.com today, "Ford's ability to survive the historic industry downturn without the help from Uncle Sam has clearly struck a chord with consumers exhausted by the bailouts and clamoring for the free market to take its course." Consumers still have power. The President is not a dictator yet.