For Vice President Joe Biden, it was a victory lap of sorts. His visit Thursday to the North American International Auto Show in Detroit was a chance to bask in the bailout of Chrysler and GM.
Last year was a great one for both companies – even more so for Ford, which took no bailout money.
That fact prompted an extraordinary quip from the Vice President as he toured the show with Ford Executive Chairman Bill Ford, Jr. “Thank you for saving our ass,” Biden told Ford.
You can read the rest of this story at FOX or any of a plethora of media outlets peddling the same misinformation.
Misinformation? What am I talking about? The notion that Ford took no bailout money which is regurgitated as fact across the media spectrum. Lets review the facts once again.
A corporation may be comprised of various divisions, branches, arms, etc. which all may be separate and distinctive from one another but still fall under the umbrella of the corporation. This is the case with Ford Motor Corporation. In fact, if you go here and take a look at this financial report from Ford for the 3rd quarter of 2013 you will see two distinct sectors listed, automotive and financial.
The automotive sector is further broken down geographically around the world. The financial sector also lists Ford Motor Credit as well as other financial services the corporation is involved in. It is here where seemingly the entire world looks past the fact that Ford Motor Credit did indeed receive a bailout. In fact, a bigger bailout than GM or Chrysler at least when it comes to the credit arena. Spellchek covered this story back in 2010.
$15.9 billion dollars is nothing to sneeze at in anybody’s book. Particularly when you consider the entire auto bailout total was $85 billion for all corporations, sectors and suppliers.
So when you continue to hear people repeating this point that Ford was above the bailout snafu, you can correct them with the facts. Ford Motor Credit is every bit as vital to the corporation as the manufacturing sector is when it comes to corporate profits. Ford did indeed receive a bailout.