Ford Motor Co. plans to restructure on its own and is not interested in any government bailout to help reverse its deepening financial slide, the company said on Thursday.
In a statement, the auto giant said “some have speculated” that bankruptcy and a federal bailout of the industry are inevitable.
“At Ford, that couldn’t be further from our minds. We plan to compete and win by driving American innovation and building cars that consumers want,” the company said.
President George W. Bush, in an interview with the Wall Street Journal on Wednesday, hinted that he would take a dim view of any bailout for the U.S. auto industry and has not been asked about it by any manufacturer.
“Ford has not asked for -- and is not interested in -- a government bailout,” said Dan Brouillette, the company’s vice president of government affairs.
Bush and his economic and energy Cabinet officials have suggested this week that it was important for U.S. manufactures
-- including auto companies -- to respond to market conditions and restructure on their own, if necessary.
Detroit’s Big Three car makers are under enormous pressure from foreign rivals, mainly Japanese car makers who have been boosting their sales in the United States for years and have taken a big lead in sales of hot-selling hybrids.
Ford, which saw its net income for 2005 fall by about $1.5 billion from a year earlier, launched a massive restructuring earlier this week that includes proposed plant closings and plans to eliminate up to 30,000 jobs over six years.
GM, which had already announced a similar restructuring, reported on Thursday that its fourth-quarter net loss mushroomed to $4.8 billion.
Congressional lawmakers have suggested changes in trade and tax policy to benefit U.S. manufacturers, including auto companies, but have not suggested a bailout.
In 1979, the federal government guaranteed $1.5 billion in loans to Chrysler Corp., which were repaid in five years. Chrysler is now a unit of Germany’s DaimlerChrysler.
The government also bailed out the airlines with $5 billion in cash and $1.6 billion in loan guarantees to help them recoup financial losses after the Sept. 11, 2001 attacks.
On the New York Stock Exchange on Thursday, Ford shares climbed 15 cents, or 1.76 percent, to $8.67, while GM shares fell 80 cents, or 3.35 percent, to $23.05.
On the other hand, the struggling U.S. auto industry would like federally backed incentives to help them retool outmoded plants, research new technology and boost the infrastructure for alternative fuels, like ethanol.
They also want the U.S. Treasury Department to take a hard line with Japan on currency issues. The auto industry, and its allies on Capitol Hill, insist Japan has been manipulating its currency lower for years to keep its exports cheap. About half of Japan’s exports to the United States are in the automotive sector.
In an interview with Reuters on Wednesday, Treasury Secretary John Snow said he believes the U.S. auto industry will be strong. A former railroad executive, Snow added that manufacturers must respond to global markets and cut costs to stay competitive.
Earlier this week, the U.S. Energy Department said it would provide $100 million over four years for research projects that will improve hydrogen fuel cells that will eventually run a fleet of environmentally friendly vehicles.
