Keller Graduate School of Management
Health Rights and Responsibilities HS542
Professor Michelle Gomillion
I have chosen to research the topic of Both Ford and GM experienced serious issues during the pre, during and post TARP period causing them to restructure and change how they do business. Each of them reacted to these pressures differently. My paper will compare and contrast the way both companies reacted to this pressure.
According to the Wall Street Journal, UBS auto analyst Colin Langan did a comparison report on GM and Ford. His report compares Ford and GM across eight different categories: 1) financial leverage and ownership; 2)…show more content… It brought back the Taurus after getting rid of it, and the Ford Taurus is now one of, if not the, bestselling car in America.
GM is a solid investment, and is much better than the bears are making it out to be, but it still has a ways to go in comparing to Ford. The company still has big pension costs, although not as big as before filing for Chapter 11. Granted, Ford does as well, but with a huge run up in shares, this alleviates some of Ford 's problems, as the company puts shares into the pension. GM moving into electric cars is a positive for the company, and I have no doubt that the Chevy Volt will outsell expectations (Nachman 2010).
According to Tom Krishner, the essential difference between Ford and GM, according to some industry analysts, is that GM went into the tank first and is ahead in the restructuring game. "I consider Ford to be in crisis and GM to be in transition," said Gerald Meyers, a former chairman of American Motors Corp. who now teaches leadership at the University of Michigan. "The future is not clear yet at General Motors. There is a future. It 's just a matter of how much and when, and that 's a big step ahead of Ford." But the Dearborn-based company [Ford] doesn 't have the momentum that GM has, said Rebecca Lindland, an auto analyst at Global Insight, an economic research and consulting company. "The biggest difference is GM is on track. They have a mission. When I talk to the people there, when you see