agent Entrepreneur logo
MenuMENU
SearchSEARCH

Bill Ford: Ford May Lose Some Investors to GM IPO

August 20, 2010
2 min to read


DETROIT - Ford Motor Co. Executive Chairman Bill Ford said some investors may reduce their holdings in his company to buy shares in General Motors Co.’s initial public offering and spread their risk across the automobile industry, reported Bloomberg.


“Some money will be rebalanced into GM, but look: our company and GM ultimately are going to succeed or not based upon performance,” Ford, 53, told reporters today at an event in suburban Detroit. “It doesn’t make any difference to me where our shares are or their shares are on any given day.”

Ad Loading...


GM, 61 percent owned by the U.S. Treasury, this week filed documents for a share sale that would cut the government’s stake and mark the automaker’s return to public markets a year after filing for bankruptcy. The offering may be as large as $16 billion, people familiar with the plans have said.


Ford shares have gained 19 percent this year through Thursday.


Ford is talking to the UAW in advance of 2011 negotiations, the chairman said today. While the automaker is “largely competitive” with GM and Chrysler Group LLC on labor costs, there are some areas where the companies aren’t at parity, said Ford, the great-grandson of the company’s founder.


UAW members at Ford ratified contract changes in March 2009 that the automaker said would save $500 million annually, including giving up annual bonuses and cost-of-living increases and accepting reductions in layoff benefits. GM and Chrysler, before the bankruptcies of their predecessors, won a freeze on pay for entry-level workers and a no-strike accord until 2015.


“I’m confident that as we go through negotiations we’ll work it out,” Ford told the audience at the event. “Any negotiation is a big deal, but I feel very good about our relationship with the UAW.”

Ad Loading...


Ford avoided bankruptcy by borrowing $23 billion in late 2006, before credit markets froze. CEO Alan Mulally has said the borrowing left the company with obligations that now put it at a competitive disadvantage.


Ford’s earnings and cash flow have kept the company ahead of schedule repaying debt, the chairman said today.


The automaker earned $4.7 billion in the year’s first six months, the largest first-half profit since 1998. Sales of redesigned models such as the Taurus and Fusion sedans helped propel the automaker’s U.S. sales up 23 percent this year compared with an industrywide gain of 15 percent.

More Industry

Photo of two men in suit jackets shaking hands next to new car inside of a dealership
IndustryApril 23, 2026

A New Consumer Culture in the Auto Dealership

Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.

Read More →
Closeup of the side of an Audi car
Industryby Hannah MitchellApril 23, 2026

New-Vehicle Sales Down

A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.

Read More →
Photo of Cadillac Lyriq SUV on road with partly cloudy sky in background
Industryby Hannah MitchellApril 16, 2026

Used Autos Selling for More

A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.

Read More →
Ad Loading...
Photo of facade of Waldorf Toyota car dealership
Industryby Hannah MitchellApril 16, 2026

Maryland Auto Group Sells

A group out West picked up the major D.C.-area collection, putting it in the upper tiers of private automotive groups in the U.S.

Read More →
Line graphic showing Cox Automotive's March Credit Availability Index status
Industryby Hannah MitchellApril 13, 2026

Auto Lending Opens Up in March

Lenders loosened access for subprime borrowers, and consumers with negative equity reached a record high, Cox Automotive reported.

Read More →
electric vehicle next to an urban charging station. EV Demand Diverges. F&I and Showroom logo
Industryby Lauren LawrenceApril 10, 2026

EV Interest Varies Regionally

U.S. consumer interest in electric vehicles lags behind other countries despite the rising gas prices caused by the ongoing war in the Middle East.

Read More →
Ad Loading...
Photo of the rear of a Mercedes GLC 400 electric SUV with a skyline in the background
Industryby Hannah MitchellApril 10, 2026

Brands Weighed on Projected Recalls

Research reveals the brands and models most likely to have higher recall rates over their lifetimes. While some brands rank high, addressing safety issues can be a selling point.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo of several cars on lifts in a service center
Industryby Hannah MitchellApril 9, 2026

Franchised Dealers Stand to Gain Service Business

Cox Automotive research shows both the opportunities and the challenges in turning consumers’ growing affordability needs into increased fixed-operations revenue.

Read More →
Ad Loading...
Photo of office desk with open laptop on it and an empty chair next to it
IndustryApril 9, 2026

What Matters Most in Building Your Agency

The partner you choose for growth and expansion is key, because better is the ultimate goal instead of growth for growth’s sake.

Read More →