Ford Motor Company would have failed along with GM and Chrysler if the Obama administration hadn’t rescued the industry, former car czar Steven Rattner believes.
We have to admit the statement is rather confusing, as Ford was the only large U.S. automaker that didn’t receive a U.S. government bailout.
However, Rattner explains: “Ford would have closed because it wouldn’t have been able to get parts, because the parts industry in this country was in arguably worse shape than the assemblers.” Rattner, now chairman of the Willett Advisors LLC investment firm, led the $63.4 billion bailout in 2009 of GM and Chrysler, which he said would have fired all their workers and ceased to exist without the bailout.
Rattner also said that former president George W. Bush did the right thing by beginning the bailout process, giving $17.5 billion to GM and Chrysler in 2008. The U.S. government was the only entity that could save the domestic automakers because no one was willing to put private capital into GM and Chrysler at the beginning of 2009, Rattner said.
“If you can’t pay your workers, if you can’t pay your suppliers, if you can’t pay your electric bills, then you have to liquidate. This is what government is set up to do,” Rattner added.