The Department of Energy announced that Ford will receive $5.9 billion in loans meant to modify factories to make more fuel efficient vehicles. In my opinion, most government driven attempts at industrial policy are destined to fail, but in the context of the immense government bailouts for General Motors and Chrysler, I suppose that $5.9 billion is a mere rounding error.
Mr. Mulally even states that “we wouldn’t have changed our plan one bit” without the financing. This is supported by prior comments he has made, some of which I have posted on this site. Let’s take a look at Mr. Mulally’s comments today on CNBC.
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Disclosure: The author does not own shares of Ford Motor Company.